Brussels: The European Commission has initiated a public consultation concerning a list of US imports potentially subject to EU countermeasures, contingent upon the outcome of ongoing EU-US negotiations aimed at removing US tariffs. The consultation addresses US imports valued at £95 billion, including various industrial and agricultural goods, and considers possible restrictions on certain EU exports to the US worth £4.4 billion. These measures are part of a strategy to address the US universal tariffs, as well as those affecting cars and car parts.
According to Cyprus News Agency, this consultation is part of the EU’s broader strategy to achieve a mutually beneficial resolution with the US, following the latter’s imposition of tariffs deemed unjustified by the EU. The European Commission is engaging in negotiations at both political and technical levels, alongside preparing potential countermeasures to protect EU consumers and industry should negotiations prove unsatisfactory. This consultation does not guarantee the implementation of countermeasures but is a critical step in the process.
Simultaneously, the EU plans to initiate a WTO dispute against the US over its tariffs, arguing that they violate fundamental WTO rules. The EU aims to reaffirm the importance of adhering to internationally agreed rules, which cannot be unilaterally ignored by any WTO member, including the US. The Commission remains vigilant about potential global export diversions impacting the EU market due to US tariffs on third countries.
European Commission President Ursula von der Leyen emphasized the negative impact of tariffs on global economies and reiterated the EU’s commitment to negotiating favorable outcomes with the US. She highlighted the importance of preparing for all eventualities, with the current consultation playing a crucial role in shaping the EU’s approach.
The next steps involve the Commission acting under the EU’s Enforcement Regulation, treating US measures as safeguard measures. Stakeholders affected by potential EU rebalancing measures are invited to submit their views during the four-week consultation period, which remains open until June 10. The Commission will finalize its proposal based on the feedback received and consult Member States through the comitology process. If negotiations with the US do not yield satisfactory results, the Commission aims to have the legal framework ready to implement countermeasures.
In parallel, upon formally requesting WTO consultations, the EU and US will have up to two months to find a mutually agreeable solution. Should these consultations fail, the EU will request the establishment of a panel to assess the case’s merits.