BRUSSELS (Reuters) - The European Union is preparing for possible retaliation over subsidies for Boeing, a European Commission source said on Tuesday, following Washington’s listing of EU products it plans to hit with tariffs in their aircraft subsidies dispute.
The U.S. Trade Representative on Monday proposed a list of EU products ranging from large commercial aircraft and parts to dairy products and wine on which to slap tariffs as retaliation for Airbus subsidies.
A Commission source said that the level of proposed U.S. countermeasures was “greatly exaggerated”, adding the amount of retaliation could only be determined by a World Trade Organization arbitrator.
“In the parallel Boeing dispute, the determination of EU retaliation rights is also coming closer and the EU will request the WTO-appointed arbitrator to determine the EU’s retaliation rights,” the Commision source said, adding that the Commission was making preparations so that it could take action after the arbitrator’s decision.
Reporting by Philip Blenkinsop