News: Markets

USA: WTO AGREES 25% DUTY ON EU DAIRY IMPORTS

The WTO have authorised tariffs on US$7.5bn of imports into the US from the EU, citing the EU’s subsidies to Airbus. A 25% tariff will be imposed on agricultural goods from France, Germany, Spain and the UK as part of effort to force Brussels to abandon the subsidies. European dairy exports that will now face higher tariffs include all milk and cheese categories, WPC, butter and dairy spreads, other dairy fats and oils, and yogurt. The Trump administration is expected move swiftly to implement these tariffs. The European Dairy Association said in a statement that the EU dairy industry should not be made to pay for problems in the aircraft sector, or even be part of the discussions. “Agri-food products and hence the farming community are now regularly taken as hostages in trade disputes.” Under the current tariff lines, the US import tariffs on EU cheese alone amounted to around US$100m last year, EDA said. “We also question the legality of the differentiation between EU Member States in the US retaliation tariff list. The EU and the European ‘lactosphère’ must be treated as a single unity in WTO terms.”