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AIRBUS

US vows to put tariffs on products including French wine and Roquefort cheese in row over Airbus

President Donald Trump on Tuesday lashed out at the EU, vowing to impose tariffs on billions in imports over subsidies to the aviation giant Airbus, suddenly escalating a transatlantic skirmish that is more than a decade old.

US vows to put tariffs on products including French wine and Roquefort cheese in row over Airbus
French favourite Roquefort cheese could be subject to tarrifs. Photo: AFP

His Twitter outburst rattled a fragile truce between the EU and the United States. Trump had sparked outrage in Europe last year by imposing steep duties on steel and aluminum and threatening new ones on autos.

“The World Trade Organization finds that the European Union subsidies to Airbus has adversely impacted the United States, which will now put Tariffs on $11 Billion of EU products!” Trump tweeted. 

READ ALSO Airbus teams up with French firm to offer sleeping berths


Airbus has been at the centre of a 14-year row between the EU and Washington. Photo: AFP

“The EU has taken advantage of the US on trade for many years. It will soon stop!”

Trump's remarks were likely to raise the temperature for US and EU negotiators, who have been meeting since last year ahead of proposed trade talks to resolve the dispute. 

The threatened US tariffs are in response to subsidies received by aircraft maker Airbus and target a host of European products including helicopters, aircraft parts, wine, Roquefort cheese, shellfish and snails.

However, the immediate consequences of Trump's remarks were unclear. 

Hours earlier, on Monday evening, US Trade Representative Robert Lighthizer had said the final amount of any tariffs had yet to be determined and would not be announced until the outcome of a WTO arbitration process – expected later this year.

For more than 14 years, Washington and Brussels have accused each other of unfairly subsidizing Boeing and Airbus, respectively, in a tit-for-tat dispute that long predates Trump.

The Boeing-Airbus spat is the longest and most complicated dispute dealt with by the WTO, which aims to create a level playing field in global trade.

Lighthizer said Monday that the World Trade Organization had repeatedly found European subsidies to Airbus harm the United States

“This case has been in litigation for 14 years and the time has come for action,” Lighthizer said in a statement.

“Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft. When the EU ends these harmful subsidies, the additional US duties imposed in response can be lifted.”

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AIRBUS

Airbus job cuts to hit Germany hardest

German Economy Minister Peter Altmaier on Wednesday urged plane builder Airbus to spread the pain fairly as it cuts 15,000 jobs to deal with lower orders following the coronavirus pandemic.

Airbus job cuts to hit Germany hardest
An Airbus plane departing Leipzig's airport on Wednesday for Rhodes, Greece for the first time since the start of the corona crisis. Photo: DPA

Just like airline giant Lufthansa, which Berlin has stepped in to save with €9 billion of taxpayer cash, “we have an interest that (Airbus) survives the crisis undamaged,” Altmaier said.

Nevertheless, “we assume that the restructuring will proceed in a way that does not favour any country nor disadvantage any country,” he added.

 

The company had said Tuesday its cuts would fall most heavily on Europe's top economy, with 5,100 positions to go compared with 5,000 in France, 1,700 in Britain and 900 in Spain.

Some 45,600 of Airbus' roughly 135,000 employees worldwide work in Germany, compared with 49,000 in France — meaning the German share of the planned layoffs is higher than the French.

Altmaier also recalled that Berlin was investing around €1 billion in developing quieter low-emissions aircraft, with Airbus among companies eligible for the funds.

Paris reacted more forcefully Tuesday, with the economy ministry blasting the planned Airbus cuts as “excessive” and urging limits on forced departures.

Company bosses have said they will discuss with unions how to achieve the job reductions, with measures including voluntary departures, early retirement, and long-term partial unemployment schemes all on the table.

On Wednesday, Germany partially restarted its travel and tourism industry again. The worldwide travel warning is being lifted for all EU member states as of Wednesday, although a travel warning remains in place for 130 countries until at least August 31st.

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