European diplomats agreed to apply reprisals to 93 million euros in American products if negotiations between Brussels and Washington are not successful.
A first package, compared to 21 billion euros in American goods imported to Europe (soybeans, jeans, motorcycles …) had been prepared and approved by the Member States in April. But its entry into force was suspended until the end of discussions with the United States.
To complete it, a second package of countermeasures of up to 72 billion euros was decided. Boeing airplanes and cars are added, which raises the total to 93 billion euros. The EU decided on Thursday to merge these two lists, which include a lot of goods.
Pending reprisals
This response will be activated if the ongoing discussions are successful and the United States unilaterally improves their customs duties. Donald Trump threatened to take them to 30%.
Europe still has the hope of finding a negotiated solution, but Europeans intend to be firmly if these negotiations were the curve again.
Brussels has listed US goods to impose taxes since August 7 in the case of a failure of discussions, including a first list already adopted up to 21 billion euros, to which a second list of 72 billion euros was added.
Anti-coercion instrument
On the other hand, US customs’ tasks already reach 380 billion euros in European products.
However, the EU and the United States are about to conclude a commercial agreement that would impose customs duties of 15% to European products according to concordant sources in Bloomberg and Financial Times. It is possible that this response plan is not activated.
In addition to these reprisals of up to almost 100 billion euros, the EU also has an “anti-coercion instrument”, a powerful commercial tool that would allow it to go beyond simple customs taxes.
This instrument, initially designed to respond to the practices that are considered unfair from China, therefore, allows the EU to block certain investments or access to their public contracts.
Source: BFM TV
