Your government and its elected leaders have allowed the world to screw us over for years. Donald Trump said he’s stand up for the U.S. and be relentless, and he has. His latest win comes care of the World Trade Organization (WTO), which has approved retaliatory tariffs on Europe.
The award of $7.5 billion annually is by far the largest award in WTO history—nearly twice the largest previous award. The Arbitrator calculated this amount based on WTO findings that EU launch aid for Airbus is causing significant lost sales of Boeing large civil aircraft, as well as impeding exports of Boeing large aircraft to the EU, Australia, China, Korea, Singapore, and UAE markets. Under WTO rules, the Arbitrator’s decision is final and not subject to appeal.
The EU, whose NATO members had to be strong-armed into keeping their funding promises for NATO, had been propping up Airbus with corporate Welfare. The government money allowed it to operate and sell at lower prices, which the WTO (finally) determined were illegal.
The tariffs will be applied to a range of imports from EU Member States, with the bulk of the tariffs being applied to imports from France, Germany, Spain, and the United Kingdom – the four countries responsible for the illegal subsidies. Although USTR has the authority to apply a 100 percent tariff on affected products, at this time the tariff increases will be limited to 10 percent on large civil aircraft and 25 percent on agricultural and other products. The U.S. has the authority to increase the tariffs at any time, or change the products affected.
The original ruling on this case goes back to 2011, where the WTO identified 18 billion in bailouts without which Airbus would have never existed. So, it’s like Biomass in New Hampshire. The government has to take money from working people and job creators and stuff into the pockets of a crony business concern that can’t pay their way to the benefit of a handful of people, some of whom are politically connected.
In the case of New Hampshire biomess, the law created to force the bailout was determined to be illegal and vacated. In the case of the EU, their industries will suffer twice. First, from the 18 billion dollar member states stole and gave to Airbus. And again, as WTO approved tariffs are applied against EU industries to cover the 7.5 billion a year, the old world owes the new for its chicanery.
So, what lessons have we learned? Well, EU scoundrels and New Hampshire scoundrels are similarly motivated to equally destructive ends.
Oh, and Trump continues to apply pressure on issues new and old to the advantage of Team America.
Note: The WTO still found a Washington State Tax break favored Boeing and violated WTO rules and classifies as an illegal subsidy.