EU open to talk aircraft subsidies with U.S.

EU open to talk aircraft subsidies with U.S.

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The European Union is open to negotiate with the United States to settle an aircraft subsidies issue, said the EU on Tuesday, while preparing getting even after the Washington added Italian cheese, Scotch whisky and olives to a list of goods for imposing heavy tariffs.

The United States and Europe for a long time are in dispute as both are claiming subsidies to Europe’s Airbus and its U.S. rival Boeing, and just days after reaching to a ceasefire in a trade battle with China, the U.S. Trade Representative’s office (USTR) came on opening new front with Europe on Monday in that dispute.

USTR, after arguing with the Europe at World trade Organization (WTO), added extra products to a list of EU goods that are to be imposed with high tariffs. The newly added products are of worth $4 billion, while the complete list contains EU goods worth $21 billion and the move has raised the concerns of industries on both sides of the Atlantic.

As the United States is seeking Geneva body to approve imposition of $11.2 billion of tariffs due to Airbus subsidies in Europe and the matter is still to be negotiated between EU and the U.S. at WTO, the actual total amount of tariffs imposed by the USTRis likely to be lessened.

But the Washington, to build up pressure on EU, has not only expanded the exposure of list of eligible goods to farm products from pork to pears while it has sent supportive signals to a key local group, trade sources said.

In April, during two days hearings, many of the local sectors including the dairy farmers in the United States have raised their concerns about the poor situation of their relevant businesses and many of the items currently added to the prospective group of products eligible to be imposed levies upon reflect the effects of those voices.

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Javier Davis produces news on stocks, currencies, bonds, commodities, and real estate. His in-depth research covers most of the major financial markets in America, Europe, and Asia. His research is based on the interconnected relationships among economic and technical factors that drive valuations in the markets, with an emphasis on how to formulate investment strategies. From interest rates to inflation to economic growth and much more, the fundamental concepts presented on this website provide an essential foundation of knowledge for investors to profit in stocks, bonds, commodities, currencies, and real estate markets.

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