The European Union (EU) has formally asked the World Trade Organization (WTO) for authorization to impose $35 million (€32.8 million) in annual trade sanctions against the United States.
Failed to Comply with Ruling
This move follows Washington’s failure to comply with a ruling that declared U.S. tariffs on Spanish olives in violation of international trade laws.
In a document circulated among WTO member states, the EU reminded the organization that the U.S. had until January 2023 to comply with the ruling but failed to do so.
Instead, the U.S. Department of Commerce reduced its tariffs on Spanish black olives from 35% to 31%, a measure Brussels deemed insufficient, according to El Economista.
Increased Tariffs
The EU has now escalated the dispute, seeking to suspend trade benefits currently enjoyed by the U.S. to a value equivalent to $35 million (€32.8 million). This figure could be adjusted for inflation in subsequent years.
The EU also announced its intention to provide the WTO with a list of U.S. goods that would face increased tariffs under the proposed sanctions.
Brussels views this case as critical due to its potential to set a precedent affecting agricultural subsidy policies under Europe’s Common Agricultural Policy (CAP).
The EU argues that the U.S. tariffs on Spanish olives are unjustified and could have far-reaching consequences for European agricultural exports.
This dispute comes as the WTO awaits the stance of President-elect Donald Trump’s incoming administration.
During his first term, Trump criticized the WTO, claiming its actions often conflicted with U.S. interests. How his administration will handle trade disputes remains to be seen.
