The European Union is set to launch a dispute at the World Trade Organisation (WTO) against US tariffs on European cars and car parts.
The Commission announced on Thursday that it was filing a request for consultations, the first step in the procedure.
"The EU is unequivocal that these tariffs are a clear violation of fundamental WTO rules," the Commission said in a statement. "The EU’s objective is therefore to reaffirm that internationally agreed rules are important and cannot be unilaterally ignored by any WTO member, including the United States.’
A request for consultations at the WTO is the first formal step in the procedure: the parties then have 60 days to try to settle the dispute amicably. If no agreement is reached, the complaining party may request the establishment of a panel to arbitrate the dispute.
The European Commission also confirmed on Thursday that it was working on countermeasures covering a total of £95 billion worth of US goods imported into the EU, mainly in the agricultural and industrial sectors.
An Audi electric vehicle assembly plant in Brussels. Credit: Belga
A "public consultation" process is being launched during which parties affected by the measures envisaged by the EU will have four weeks to give their views.
The Commission must also consult with Member States. The aim is to finalise the list of countermeasures and have legislation ready if the negotiations between the EU and the United States fail.
If these discussions continue at the technical and political level, the EU "is preparing potential countermeasures to defend its consumers and industry," the Commission said.
After announcing 20% tariffs on European products, the US administration announced on 9 April that it would suspend these tariffs for 90 days, until June. In the meantime, 10% surcharges are being applied to European products, as well as the previously announced 25% tariffs on steel and aluminium and on European cars.
The Commission also said it would continue to monitor the effects of global export diversion to the European market. The EU is concerned that products from China, which are heavily targeted by Trump’s tariffs, could flood its market.
The Commission is also continuing discussions with third countries to find new export opportunities and diversify its sources of supply.
