EU Trade Commissioner Valdis Dombrovski suggested the EU and the U.S. suspend tariffs for ix months, the German newspaper Der Spiegel reported. It’s viewed as a signal the EU is seeking a compromise in a 16-year-old dispute over aircraft subsidies.
The move was praised by Robert M. Tobiassen, president, National Association of Beverage Importers.
In March, the U.S. and EU suspended the Airbus/Boeing tariffs for four months until July 11, 2021, and the U.S. and UK suspended the Airbus tariffs until July 4, 2021. No public explanation was released by any party on the determination of four months rather than six months, the latter being more precedented.
“Four months keeps pressure on both the U.S. and EU and the U.S and UK to reach successful negotiated settlements. But a full six months is commercially essential for importers of wines and spirits” said Tobiassen.
“The unusually short four-month period fails to meet the reality of the commercial time needs of importers” according to Tobiassen. “Container shipping vessels and truck transportation after entry are experiencing unprecedented delays from port congestion or “traffic jams” on both the East and West Coasts meaning importers have no certainty on the date their goods will actually unload and clear entry through Customs” emphasized Tobiassen.
“Importers of wines from France and Germany suffered the expanded Airbus tariffs effective on January 12, 2021, solely because the vessels were anchored for days and weeks in waters outside the ports of entry and could not unload and clear entry before the expanded tariffs became effective. One importer told me this port congestion delay on the West Coast cost his company $300,000. Others have told me they were similarly impacted financially.”
The final decision on trade sanctions in Section 301 investigations of the digital services taxes in Austria, Italy, Spain and the UK (and India and Turkey) is required by early June under U.S. trade law. The automatic doubling of the EU tariffs on American Whiskies and Bourbon is effective in the beginning of June, if there is no suspension. If the current four-month suspensions in the Airbus/Boeing tariffs remain in place, then June will require a review of another suspension.
“June is already a pivot month for many trade matters and a six-month suspension would move us beyond that busy month” said Tobiassen. “Moreover, a six-month suspension more closely aligns with the schedule of the next review of action for the Airbus tariffs, so it is a perfect fit,” he added.