Domestic Interests Welcome Tariffs on European Competitors
While Airbus planes and components are at the top of the retaliatory tariff list the Office of the U.S. Trade Representative is recommending, many other products are included to reach $11 billion in compensation. It's quite possible that the World Trade Organization will say that the USTR estimate of $11 billion in annual damage to the U.S. civil aircraft industry due to Airbus subsidies is too high, and will authorize a lower tariff total.
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Domestic producers testifying on May 15, the first of two days of hearings on the proposal, either cheered the inclusion of European competitors' products, or in one case, asked that their products be added to the list.
The USTR second annex, which covers food products such as olive oil, olives, wine and many cheeses, affects all European Union countries, not just Germany, France, the United Kingdom and Spain, which do most of Airbus manufacturing.
Jim Mulhern, CEO of the National Milk Producers Federation, said his members are seeking 100 percent tariffs on European butter and cheeses. "We have a unique opportunity to make a big dent in dairy market access with Europe," he said, arguing that the fact that the U.S. imports $1.8 billion in cheese and butter from Europe and Europe only imports $145 million is because of non-tariff barriers to trade, such as not allowing U.S. Parmesan producers to call their cheese Parmesan. Mulhern said NMPF would be recommending additional dairy products from Europe it wants to see hit with tariffs.
In addition to the dairy producers, a ferroalloy producer and a fertilizer company either praised the inclusion of their products on the tariff list, or, in the case of fertilizer, asked that it be added. American-made fertilizer is currently facing antidumping duties of 22.6 percent in Europe, which is on top of either 6.5 percent or 5.5 percent tariffs, depending on the type of fertilizer. Witness Rosemary O'Brien of CF Industries said that at a minimum, she wants the retaliatory tariffs to match the base tariffs in Europe, but would prefer 100 percent tariffs.