Punitive tariffs on American products

Since March 1, 2004, certain US products have been subject to punitive tariffs from the European side. These are, for example, meat, paper or textiles. The punitive tariffs start at 17 percent and increase by one percentage point every month, up to a maximum of XNUMX percent, as long as the US does not change its current policy.

More than a year ago, the World Trade Organization (WTO) criticized the US government's approach of granting American exporters massive financial relief. According to the WTO, this would violate the subsidy agreement and, with regard to agricultural products, also the agriculture agreement.

Despite the clear legal situation after the WTO ruling, the EU had not asserted any claims against the US government in order to give it time to gradually correct the legal situation. After the long-simmering conflict, the European side is now imposing sanctions.

Trade Commissioner Pascal Lamy said: "Although we have waited more than two years, the United States has not brought its legislation into line with WTO rules. Because of this, we have no choice but to take countermeasures. It's not about retaliation, it's about following the rules."

Source: Brussels [EU]