Dear Mr Van Stipdonk,
Many thanks for your letter of 6 July on US countermeasures on European dairy products in
the context of the WTO-Airbus dispute and its impact on the sector, which drew my highest
attention. The Commission is fully aware of the damaging effects of the US measures
imposed on European dairy products, which as you point out are aggravated by the effects of
the Covid-19 pandemic. The US market is an important destination for European dairy
exports and US consumers and retailers count on continued and affordable access to
European products.
Please let me reassure you that our priority remains to reach a balanced negotiated solution to
the longstanding civil aircraft disputes with the US as soon as possible. To this end, we have
shared with the US concrete proposals on a possible settlement on the existing subsidies with
on-going effects to our respective aircraft manufacturers. We have also showed readiness to
agree on future subsidy disciplines for the sector as a whole. I have made numerous visits to
Washington to convey to US interlocutors the importance of finding a negotiated solution as
soon as possible.
Despite our best efforts, it looks like we will not be able to solve our differences before the
WTO arbitrator’s award on the EU’s countermeasure rights in the Boeing dispute, as the US
has not so far engaged in negotiations. The recently announced consultation on changes to the
US retaliation list is not a good signal for an early settlement. Given the lack of progress, we
have to be prepared to impose EU tariffs on US products – in the same way as the US has
imposed additional duties on EU products since last October. We certainly prefer to avoid
imposing tariffs, but the US seems to leave us with little choice. I will reach out yet again to
my counterparts in the days ahead to see if there has been any development of their position.
I look forward to remaining in contact with you and the European Association of Dairy
Trade/Eucolait on this important issue.
Download the full PDF here.
Photo Credit to European Committee of the Regions