Cámara València (Chamber of Commerce València) – October 10, 2019
Cámara Valencia has prepared a report on the impact of U.S. tariffs on Valencian exports.
Among other conclusions, the study highlights the low incidence in exports of the Valencian Community, affecting mainly wine, olives and canned fruits, products also with a downward trend in the North American market.
If an agreement is not reached on October 14 and these new tariffs enter into force, the European Union (EU) could retaliate against the United States – including increased tariffs on certain products, new contingencies or technical standards – increasing the protectionist spiral and negatively impacting international trade between the U.S. and the EU, at a time characterized by expectations of international slowdown.
Background – Following the ruling of the World Trade Organization on the denunciation of illegal aid from the European Union to Airbus, the U.S. will begin to impose tariffs on 150 products, to as of October 18, worth $7.5 billion over €6.8 billion). These additional fees range from 10% on their value in the case of the “new airplanes and other airplanes, of more than 30,000 kilos without load, to 25% in the rest.
The list disclosed is still provisional, because four days before October 18 a meeting between the United States, the European Union and the WTO will take place, for the final approval of the activation of these new tariffs. At that discussion, it is also likely talk about the next WTO decision on Washington’s aid to American aircraft manufacturer Boeing.
The new protectionist measures of the United States have four clear recipients: Germany, France, United Kingdom and Spain, who are the owners of Airbus and who gave the illegal aid that has given rise to the verdict of the World Trade Organization (WTO). Thus, in the list, for example, appears the whiskey manufactured in the UK and not that of Ireland, or Spanish oil and not Italian or Greek. However, it is also established 25% tariffs on products exported by all EU countries.
The full report (in Spanish) can be accessed here.
Source: Cámara València (Chamber of Commerce València)