EU trade policy ends up with new tariffs on Scotch whisky

The World Trade Organisation is body designed to lower tariffs and enforce the common global rules on trade to the benefit of consumers. It is a blow when after long and careful deliberation and investigation it feels it has to make a judgement which entails another country imposing tariffs on a trading counterparty.Ā  That is what happened this week thanks to the behaviour of Airbus and the EU.

The WTO found that Airbus had receivedĀ  subsidies that broke the rules of fair trade, which in turn had cost Boeing sales of planes. They therefore have allowed the USA to impose tariffs on goods up to a value of $7.5bn which reflects their calculation of the amount of sales damage done to the US company. The USA has decided to impose a 10% tariff on Airbus planes, which will hit future sales. The UK makes the wings for these products.

The USA has also chosen some high profile food and drink products from EU countries for a 25% tariff. ThisĀ  includes Scotch whisky, which is particularly unwelcome.Ā  It is a reminder that the EU which makes us impose high tariffs on food and drink from non EU parts of the world can through its wider policies end up costing us exports in these same areas as countries impose retaliatory tariffs.

None of this is helpful at a time of manufacturing downturn. There is already an intense tariff based trade spat between the USA and China. The refusal of the EU to lower its high 10% tariff against non EU cars is also a continuing sore with the USA which charges only one quarter of that level on EU cars. The danger is this WTO judgement will take us closer to a broad based trade war between the USA and the EU, just as we have seen develop with the USA and China.

162 Comments

  1. Pominoz
    October 5, 2019

    Sir John,

    But the USA will drop the tariff on scotch immediately we leave the EU. So, if we believe Boris, all is good.

    1. steve
      October 5, 2019

      Pominoz

      Not if Scotland leaves the UK. (or gets kicked out)

    2. Mitchel
      October 5, 2019

      That might be true but I would advise caution over the amount of goodwill Mr Trump will extend to the UK-he is out to get those who have sought to undermine him- not just the US “deep state” itself but it’s associates in Ukraine(as you have seen just recently) and London.

      1. Pominoz
        October 5, 2019

        Mitchel,

        Don’t forget Trump’s Scottish ancestry. They like their Scotch in the USA and whilst I lived there, it was never seen as a threat to Bourbon.

        I think the main aim of the tariff is to target EU products like French brandy. My real concern is any ‘transition’ period which could see the tariff in existence for four years or even more.

  2. Mark B
    October 5, 2019

    Good morning.

    The decision would have affected the UK parts of Airbus regardless of whether we are in the EU or not. What I find disconcerting is that the EU is happy to give companies like Ford and JLR money to move their operations to places like Turkey and Slovenia thereby destroying jobs and job creation in the UK.

    The hit on Scotch Whisky is somewhat offset by falls in Sterling. They will of course have to equally contend that with the Scottish Law regarding the minimum pricing of alcohol which I am sure will equally hit sales.

    I am glad for the USA and President Trump. He is doing his job in defending his country and their industries. I await similar here.

    1. Martin in Cardiff
      October 5, 2019

      If Trump’s administration were to impose rigorous independent certification for airworthiness, and to end contracting it out to Boeing themselves, then I would perhaps agree with you.

      Thank heavens that we have sanity in the European Union in these matters.

      1. libertarian
        October 6, 2019

        Martin in C

        Oh dear

        The FAA has never allowed companies to police themselves or self-certify their aircraft. With strict FAA oversight, delegation extends the rigor of the FAA certification process to other recognized professionals, thereby multiplying the technical expertise focused on assuring an aircraft meets FAA regulations.

        No word from you on the “sanity of EU regulations” on vehicle emissions yet

    2. Hope
      October 5, 2019

      I think Hannan is correct, the EU want the UK trapped as an uncompetitive trade colony.

      Traitor Mayhab and co. thought it was the best way to return to the EU after short term punishment to get us to think correctly.

      RoI do not want their beef market ruined by the U.K. leaving the EU, plus a bit of historical spite thrown in.

      The best response from the UK public is to stop buying RoI products and anything from the EU. Look for alternatives especially away from RoI, German or French products. Do not support those who seek to economically hurt us. The answer is in your wallet.

      1. acorn
        October 5, 2019

        If I were you, Hope, I would get used to the idea that you will be “Eating Crow” post Brexit. You won’t be able to afford prime Irish Beef post a “no-deal” Brexit, any more than you can afford it now I suspect.

        1. steve
          October 5, 2019

          acorn

          Wow ! what a revelation. Cripes, we’d all better hurry up and sell our sovereignty down the river just so we can buy produce from a country that regularly insults us.

        2. Hope
          October 5, 2019

          So funny.

          You forget the food mountains held in car manufacturers warehouses during the 1980s- while Geldoff was singing save the world- because of over production through EU subsidies to help eaters EU and the French. More market for UK farmers to take up. UK Diary herds to expand again instead of Eastern European imports.

          Ah, then we have plenty of fish…..

        3. Edward2
          October 5, 2019

          If you added the tariff onto a portion of EU Irish beef it would add under a pound to its cost.
          I reckon Hope would be able to afford it.
          Or Hope might choose some lovely Welsh Lamb, Scottish salmon or English pork fillets.

          1. acorn
            October 6, 2019

            Did you notice, that shortly after we drafted a trade deal with the Feroe Islands, the Feroes bought the Scottish Salmon Company. Suspicious or what?

          2. Edward2
            October 6, 2019

            And your point is?

          3. libertarian
            October 7, 2019

            acorn

            Wrong the Faroe Isles did NOT buy Scottish Salmon Fishing Co which is a company registered in Channel Islands and listed on the London Exchange . A Faroe Islands company owns some shares in it but the biggest shareholder is a Swiss company

            ( not sure why my previous post on this failed moderation as its an easily checkable fact)

        4. Pominoz
          October 5, 2019

          acorn,

          Aussie beef, as good or even better, but at a much lesser price, may soften the blow!

        5. Fedupsoutherner
          October 5, 2019

          Acorn. Who needs Irish beef. I buy nothing Irish. I try to buy English whenever I can. I believe in supporting my country contrary to some that comment on this blog.

      2. steve
        October 5, 2019

        Hope

        “The best response from the UK public is to stop buying RoI products and anything from the EU. Look for alternatives especially away from RoI, German or French products. Do not support those who seek to economically hurt us. The answer is in your wallet.”

        Exactly, absolutely spot on. I stopped buying ROI stuff when they started insulting our country.

    3. Hope
      October 5, 2019

      JR, I am sure you will not mind this being O/T.

      Daniel Kawczynski MP ought to put his case to challenge the surrender bill to crowd funding. Do it through Guido website for a link like the lad who challenged the biased unfit for purpose Election Commission. I am willing to make a contribution.

    4. Andy
      October 5, 2019

      The EU did not give money to Ford or Jaguar to move. As popular as those stories are among Brexiters they also happen to be untrue.

      1. Edward2
        October 5, 2019

        A simple internet search says Ford had an Ā£80 million loan from the EU to move to Turkey and Jaguar got Ā£110 million to make a move to Slovakia.

      2. JohnK
        October 5, 2019

        Andy:

        You are quite right. The EU did not lend money to Ford and Jaguar to move British jobs and production to Turkey and Slovakia.

        It was the European Bank of Reconstruction and Development. This has nothing to do with the EU, apart from the fact that the EU is its largest shareholder.

        You’re welcome.

        1. Andy
          October 5, 2019

          Iā€™m afraid you have added 2 and 2 and made 5.

          Ford got help to build in Turkey. It later axed jobs in the UK. But it did not get money to axe jobs in the UK.

          JLR received a grant to build in Slovakia. It later axed jobs in the UK. But it did not get money to axe jobs in the UK.

          Itā€™s called globalisation. And if you think Brexit is going to make it better – oh dear.

          Reply It’s called EU subsidy at our expense

      3. Ian Wragg
        October 5, 2019

        The ECB funded by EU states gave cheap loans so they would relocate.

      4. steve
        October 5, 2019

        Andy

        Are you sure about that ?

        Thank God I bought my Jaguar when I did. The new JLR products built on the continent don’t appeal to me at all.

  3. Sea Warrior
    October 5, 2019

    I wonder what was the calculation in Washington when deciding to target Scotch whisky? Still, I’ll be buying a bottle to show support for my Scottish kith and kin and hope others will do the same.

    1. steve
      October 5, 2019

      Sea Warrior

      “Still, Iā€™ll be buying a bottle to show support for my Scottish kith and kin and hope others will do the same.”

      I won’t. If anything I’ll buy another bottle of Japanese whisky. Anything that harms the EU, Scottish and Irish economies is fine by me.

      I certainly don’t buy goods from countries that stab mine in the back.

    2. Sea Warrior
      October 5, 2019

      Indeed – and the predictable rubbishing of British proposals this week, by Brussels, is the final proof that we would be beyond stupid to entrust any aspect of our future to a group of people who clearly hate us.

    3. Andy
      October 5, 2019

      Thatā€™ll make up for the loss of their Ā£1bn US business.

      1. Edward2
        October 6, 2019

        The SNP are in power and they are 100% pro EU.

        Perhaps they will explain to the voters that if the UK had left the EU on March 31st then they would be better off by the sum you state.

    4. Fedupsoutherner
      October 5, 2019

      @Sea Warrior.

      Absolutely not!! When I feel the Scots are supportive of the rest of the UK and particularly England I might just change my mind. I had 15 years of hateful remarks when living in Scotland and I have had a belly full of Scotland. If they get their independence – good.

  4. Ian Wragg
    October 5, 2019

    It just expose the EU for what it is. An inward looking protectionist cartel.
    We’re better off out.

    1. Martin in Cardiff
      October 5, 2019

      It is the US which is imposing the tariffs, not the European Union.

      Could you explain, please?

      1. steve
        October 5, 2019

        MiC

        Quite simple; the US is retaliating against the EU, and one of the targets is Scotland’s export, which is quite amusing.

        I wonder, does Wales export anything ? There’s Welsh lamb I suppose, but I don’t buy anything from Wales. I think you can guess why.

        1. Martin in Cardiff
          October 6, 2019

          According to my information, it was the respective nations which paid the reported subsidy, not any European Union institution.

          So it is presumably against them quite correctly, that the US is retaliating as you claim.

          That would be against the UK and France, principally, and not against the European Union, then.

          1. Edward2
            October 6, 2019

            The EU gave the money to the nations and then the nations gave the money to the car companies.

      2. libertarian
        October 6, 2019

        Martin

        NOPE wrong again ( as usual) Its the WTO who have imposed the fine via tariffs as the EU was found guilty of illegally aiding companies

        Youre welcome

    2. Lifelogic
      October 5, 2019

      Exactly. An over regulated, over taxes. often corrupt antidemocratic, bureaucrats know best area in huge relative decline.

  5. Lifelogic
    October 5, 2019

    Indeed. All the negotiation on Brexit and the China/US trade battle are a reminder of just how much governments damage trade and get in the way of business and productivity.

    The BBCā€™s Question Time and Any Questions are still keeping up the circa 4 to 1 pro EU to pro Brexit rule I see.

    Just why do they keep having Jeanette Winterson on? She never says anything sensible, thinks money grows trees and interrupts endlessly anyone who does say anything sensible or coherent.

    Much the same can be said of the dire Bonnie ‘Ireland owes this country nothing’ Greer. Did we not help bail them out with huge soft loans quite recently? Also the softly spoke Barry Gardener with his desire to confiscate (and tax to death private schools) and ā€œaskā€ those who can to pay more tax so Labour can piss it down the drain. ā€˜Askā€™ with the threat of prison if you say no that is.

    Taxing private schools will clearly raise far less than it would cost to educate those pushed back on the state. It would also destroy many excellent schools. I went to a decent northern state grammar school and they have already been largely destroyed (many by Thatcher) other than in Kent and a few other places. With Labour you can spend your money on alcohol, Ferraris, prostitutes, betting on the horses but not on educating your son or daughter to be a doctor or top engineer! Will they ban tutors and the buying extra books for children too?

    1. tim
      October 5, 2019

      Lifelogic- Dont give em any more ideas!

    2. Richard1
      October 5, 2019

      Certainly tutoring must be banned under Labour. Apart from anything else tutors are not ā€˜qualifiedā€™ – ie they have not been through the political indoctrination of teacher training. They are private, unregulated and profit making, and their services give an ā€˜unfairā€™ advantage to their customers. What could possibly be worse to the collectivist eye?! Really they ought to move on further in this logical progression and stop parents giving an ā€˜unfairā€™ advantage to their own children, for example by teaching them to read write, basic maths etc. Or maybe even by seeking to provide them with better than average food and clothing? This is after all is where communist societies ended up in the past.

      Any students who like the idea of earning a bit extra by tutoring should think very hard before they vote Labour.

    3. David J
      October 5, 2019

      Lifelogic. Beautifully put. The Question Time comment is spot on: 4 to 1 is the typical balance. The Chair puts the tin lid on it by showing her remain credentials in how she manages the debate

    4. Lifelogic
      October 5, 2019

      The Universities Minister promises:- ā€œ Iā€™ll stop universities selling false hopeā€, well is it not the government and the tax payer funded soft loans that drive this duff degree lunacy? He goes on to accuse Chancellors of ā€œpromoting degrees lacking academic rigourā€. Well as 50% of students have 3Ds or lower at A level they would have to lack rigour or they would nearly all fail and that would not be good for the universities income stream and the Chancellors salary, bonuses and pensions would it.

      Good to see the local authorities are spending our money wisely. Ā£137k Labour Council Chief suspended on full pay for six years is finally sacked. With some further nice pay off and a gold pension one assumes. Better get some more motorist muggers out on the streets to find some cash to cover all this. 600,000 parking, bus lane or box junction fines should cover it all after the muggers labour costs too! A gigantic parasitic job creation scheme.

  6. Dominic
    October 5, 2019

    Anything that damages and undermines the malignant, manipulative and mendacious EU is welcome.

  7. Shirley
    October 5, 2019

    We pay heavily for the EU’s protectionism, little of which benefits the UK.

    The EU wants to be a (maybe, ‘the dominant’) superpower, so they are going to come into conflict with the US at some point. Would the EU use their superpower wisely and benevolently? I seriously doubt it.

    1. Mitchel
      October 5, 2019

      There isn’t the faintest of hopes of the EU becoming any sort of superpower;it is just another rambling,dysfunctional sprawl like the Holy Roman Empire or the Polish-Lithuanian Commonwealth-and like those two will probably end up being partitioned between the real Great Powers even if it retains some outward form.

  8. Lifelogic
    October 5, 2019

    I am not a big fan of Gove, after he idiotically inflicted May on the nation and cost me my Boris bet (the first time that is). Plus he even suggested killing private schools with VAT like Labour. But I read:- Gove criticised after ā€˜comparing Bexit to fall of the Berlin wallā€™ except he did not do this at all.

    Anyway there would have been some validity to the comparison had he actually made it.

  9. Alan Jutson
    October 5, 2019

    Given the EU is already member of the World trade organisation, and have to abide by their rules, why are our Remainer politicians and the EU so against the UK trading under such terms with them when we leave.
    Why are we even trying to strike/negotiate our own complicated tailormade deals with the EU, when a ready made solution is already on the table, that both the UK and the EU trade under with other Countries which are outside the EU.
    The WTO as can be seen, have their own arbitration system in place already to ensure fair play, which also as I understand, covers fishing rights.

    Why try to re-invent the wheel, again and again, and again.

    1. tim
      October 5, 2019

      Alan Jutson- the DEAL is for the rich people who have always run this country, and always will. Dont get mad at Boris! Its like shouting at punch and judy.

  10. Lifelogic
    October 5, 2019

    It is interesting to see how Brexit divided people so viscerally. I generally agree with Richard Dawkins on almost everything, I have read (or listened to) almost all of his excellent and often very funny books. True he is a bit taken in by the climate alarmist exaggeration religion (he is not after all a physicist or engineer) but over Brexit, just like Prof. A C Grayling, he has clearly gone totally potty (in the Spectator this week).

    1. Andy
      October 5, 2019

      Brexit has divided people because, despite all the talk of trade and immigration and sovereignty, it primarily about identity.

      Brexiters are seeking to impose their identity and their version of Britishness on everybody else. We reject this and do not want.

      And, incidentally, this is why you lose in the end because ultimately you can not stop people being who they are.

      1. Edward2
        October 5, 2019

        Stop making things up Andy.
        It is about independence and controlling our own laws, money and borders.

      2. steve
        October 5, 2019

        Andy

        Inversely, or should I say perversely, it is you and your kind assuming a right to tell us what and who we should be.

        No my friend, it is you who will lose, just as you lost the referendum.

        1. Andy
          October 5, 2019

          Fortunately you are not my friend.

          And I am not telling you want to do. If you want to wear Union Jack underpants and hark back to the war then be my guest. It is a bit dim but Iā€™m not stopping you.

      3. Lifelogic
        October 5, 2019

        It is primarly a question of:- Do you want to live in a real democracy or in regions of an anti-democratic, suffocating, socialist superstate run by dire, one size fits all, bureaucrats with endless corruption and croney capitalism everywhere.

        1. Martinez
          October 5, 2019

          I’d rather the latter with good EU order straight bananas CAP payments and holidays / retirement in the sun all topped off with EU health protection..junker is retiring soon so then who you’re going to complain about next..stupid fellow- and what’s democracy got to do with anything? You think you have democracy in Britain? What about the unelected HoL 800 of them then the Royal family and endless thousands of civilservants none of them elected. Come to think of it how many in the country percentage wise put Boris into the top job..so back to the drawing board about democracy its only a facade a sop to throw at the ignorant classes to keep them in their place..and yes I chose the latter

      4. Anonymous
        October 5, 2019

        Maastricht and mass immigration were both attacks on national identity.

        Destruction of a settled nation was intended, destruction of a nation was what you got.

        You do NOT get to choose what a destroyed nation looks like.

        You unleash two cowboy builders – Major and Blair – on a rampage with sledgehammers in a cathedral you don’t get to choose how it falls.

  11. steve
    October 5, 2019

    JR

    Very informative, thank you.

    While not being a heavy drinker, I do occasionally enjoy the odd scotch…..but not scottish whisky. Japanese whisky. It’s superior, and comes from an ally nation. I stopped buying scottish products at the same time as I did Irish and EU products.

    You say the lobbing of a 25% tariff on Scotch is unhelpful, I say it’s a lesson in irony for Ms Sturgeon, but no doubt she’ll blame the English Tories.

    I’m off into town this morning, and will make a special point of buying something american.

    1. Barry
      October 5, 2019

      How can something as subjective as Japanese whisky be ‘superior’? It’s a bit like saying that apples are superior.

      If you told us why, in your opinion, it would be much more interesting.

      1. steve
        October 5, 2019

        Barry

        “If you told us why, in your opinion, it would be much more interesting.”

        Sure….I find it tastes better. Hope that answers your question.

      2. Lifelogic
        October 5, 2019

        English apples are indeed superior.

    2. Fedupsoutherner
      October 5, 2019

      Three cheers to that Steve.

    3. sm
      October 5, 2019

      Try Welsh whiskey, expensive but wonderful!

      1. steve
        October 5, 2019

        sm

        No I wouldn’t touch it, on a point of principle.

      2. Lifelogic
        October 5, 2019

        Do they have names like Chwyrligwgan, Gwdihŵ or Llanfairpwllgwyngyllgogerychwyrndrobwllllantysiliogogogoch?

        I suppose you have to point at the one you want rather than ask for it.

        Quite a few English whiskeys still arround it seems.

    4. The Prangwizard
      October 5, 2019

      I’m getting a bit lost in all this but buy English whisky.

  12. Oliver
    October 5, 2019

    Say BMW have a plant in the US, as they do, but argue that it isn’t very profitable, because the lions share of their profit margin comes from design etc, “intellectual property”, done in Germany. How will that play in turn with the EU trying to slap taxes on Amazon, Apple and Google?

    1. Marie Howard
      October 6, 2019

      The German cars exported from the USA to China have apparently fallen foul of China’s spat with the USA on Tarriffs. Angela asked for special consideration for Germany’s cars but then upsets China by interfering in Hong Kong.

      https://www.german-foreign-policy.com/en/news/detail/8063/

  13. Prigger
    October 5, 2019

    My book will make Michael Parkinson famous for living in the same village as me. It will make Arthur Scargill famous for working in the same pit as me and living in the same town as me. My book helps people like them and the late Lord Mason. Been in his house. It was okay.

  14. oldtimer
    October 5, 2019

    My understanding is that the new tariff applies to single malts, apparently not to blended whiskies. This mitigates the impact a little. A tariff of 10% on vehicles would be very damaging to JLR. The USA is a key market especially for the recently announced new Defender which is assembled in Slovakia.

    1. Sir Joe Soap
      October 5, 2019

      More fool them for not keeping production here and more fool the government for not having left the EU already and signed a US trade deal for zero tarriff vehicle exports then.

  15. CHRISTOPHER HOUSTON
    October 5, 2019

    Rory Stewart’s ghost is not Trump. It is England

  16. Denis Cooper
    October 5, 2019

    Off this topic, only because it has come back into my mind overnight, I would like to recall this comment from June 2018:

    http://johnredwoodsdiary.com/2018/06/28/the-eu-summit/#comment-943336

    “I may be wrong, but it seems to me that this Bill which has just completed its passage through both Houses of Parliament:

    https://services.parliament.uk/bills/2017-19/haulagepermitsandtrailerregistrationbill.html

    ā€œHaulage Permits and Trailer Registration Billā€

    could be used to help enforce UK controls on exports across the land border from Northern Ireland into the Irish Republic in order to assist the EU in protecting the integrity of the EU Single Market while keeping that border as open as it is now.”

    Or, UK controls on exports across the sea border between Great Britain and Northern Ireland, if Boris Johnson insists on applying the controls in the wrong place.

  17. GilesB
    October 5, 2019

    It was entirely predictable that the EU would sacrifice the Scotch Whisky industry.
    **********
    GilesB
    Posted March 30, 2019 at 6:40 pm | Permalink
    Great speech. Well done!

    The indicative vote process on Monday is expected to lead to a majority for a permanent Customs Union. This must be resisted. We cannot give access to our market with no reciprocity. Nor can we allow the EU to accept on our behalf a massive tariff on say Scotch Whisky.

    1. Martin in Cardiff
      October 5, 2019

      It is up to the US to decide on which products to impose tariffs.

      It is they who chose Scotch, not the European Union.

      At least read John’s posts properly.

      1. GilesB
        October 5, 2019

        Heh if you think these decisions are made out of the blue.

        Of course you are absolutely correct that the US set the tariff.

        But that would definitely have been raised in advance as a possibility with the EU negotiators. Indeed I would expect EU negotiators to have made a suggestion.

        However there are wheels within wheels. On this occasion, I suspect that unidentifiable actors within the UK government may have asked for this tariff on Scotch whilst the UK remains in the UK. You can work out why.

        But for sure this wasnā€™t an arbitrary choice by the US. Youā€™d have to be extremely naive to think that

        1. GilesB
          October 5, 2019

          … remains in the EU …

  18. Martin in Cardiff
    October 5, 2019

    The sorry story behind the 737 Max is what has done the main damage to Boeing’s sales.

    Since the US can push the WTO about, it’s clear what has happened here, I think.

    Thank goodness for European Union aviation certification rules.

    Reply The adverse findings by WTO relate to the pre 737 Max period!

    1. agricola
      October 5, 2019

      This Welsh gentleman will clutch at any piece of flotsam to keep his argument afloat.

    2. Martin in Cardiff
      October 5, 2019

      They may well John, but your reply is premised on what I say about the US’s relationship with WTO and its motives not being the case.

      My point is that the US – thanks to its own regulatory ineptitude – is now highly motivated to disadvantage Airbus re Boeing, and I am suggesting that the WTO has been sympathetic towards those objectives rather than impartial.

      The losers in this will be passengers, who will likely be exposed to continuing loss of air safety, rather than to have the US fully clean up its act, I think.

      Reply Try reading the WTYO judgement which is well researched and evidenced and which does not agree with all parts of the US case

    3. libertarian
      October 5, 2019

      Martin

      Why are you WRONG about everything, why despite rudely chastising people for not checking do you STILL not check anything before you post? The Airbus illegal subsidies happened BEFORE the 737Max

      1. libertarian
        October 5, 2019

        ps

        Also dont you find it worrying that it was US certification officials that uncovered German car manufacturers falsification of emissions data and not the fantabulous rules and regulations of the wondrous ( peace be upon them) EU ?

        The EU are rule breakers and we’ve all known this for a very long time. You only need to look at the record of dodgy behaviour of some of the leaders of that organisation and its offshoots

        1. Martin in Cardiff
          October 5, 2019

          Just answer these questions.

          a) Did two 737 Maxs fall out of the sky?

          b) Has US certification been found wanting?

          c) Have Boeing sales suffered as a result?

          d) Is Airbus its main rival?

          e) Have US certification problems been eradicated?

          f) ***Does the US have much influence over the WTO?***

          g) ***Is it more expedient to address competition by burdening your rivals with tariffs, than by solving the doctrinal problems of out-sourcing certification to the industry itself?***

          The timing of the purported grievance is irrelevant if it is a mere pretext.

          1. Anonymous
            October 5, 2019

            Back to basics.

            Federalists in Britain abolished my country and used the EU as cover. This is why I voted to leave the EU.

            You don’t destroy a country and then get to decide what it looks like afterwards. Enforce mass immigration on an enfranchised population and there have to be consequences.

            Here they are.

            We’re all going to have to suck it up.

  19. formula57
    October 5, 2019

    And doubtless Merkel-like in the face of Evil Empire foolishness, N. Sturgeon’s solution will be “more Europe”.

  20. RichardM
    October 5, 2019

    The case for EU against the US who have similarly subsidised Boeing is pending with the WTO . The EU countries together are big enough not to be bullied by Trump, unlike little England will be.

    1. Robert McDonald
      October 5, 2019

      5th largest economy in the world .. little ? That’s a small mind working again .. project fear is failing. I bet the US wins in any contest over unfair tariffs against the protectionist eurocracy.

    2. acorn
      October 5, 2019

      Much of the subsidies to Boing are disguised in the US’s massive military budget.
      The following is in the interest of balance on this site (impossible I know).

      Details of the US subsidies to Boeing challenged by the EU Overview of US subsidies to Boeingā€™s Large Commercial Aircraft division (USD millions) https://trade.ec.europa.eu/doclib/docs/2010/september/tradoc_146484.pdf

    3. libertarian
      October 5, 2019

      RichardM

      Lol

      The WTO Arbitrator suspended the arbitration proceedings on 28 November 2012. On 20 May 2019 the EU requested the resumption of the arbitration.

      I wonder why the EU did that

      “little” England isn’t bullied by the USA as we are partners and we deal with each other on a mature basis .

      The EU is a centralised controlling institution that is well known for bullying its members . For details see Danish, Dutch, French and Irish referenda, as well as Greece , Italy, Cyprus and Catalonia

      Kool Aid sales are rocketing

      1. RichardM
        October 5, 2019

        We are part of the EU so they are bullying us.
        Nearly one third of the US population are obese through drinking crap like kool aid. And you think it’s good.

  21. Ian Wilson
    October 5, 2019

    Boeing have also received subsidies in all but name via sales of military versions of their airliners. Boeing might not have launched their first jet airliner, the 707, had in not been for massive sales of military C-135 transports and KC-135 tankers, over 800 in all. These sales enabled the company to sell the airliner at a far lower price than would otherwise have been possible. Incidentally the KC-135 remains in service after over 6o years.

    1. Mark B
      October 5, 2019

      Also NASA. NASA provide technical and scientific information that can be used by US companies to develop their products. It is not illegal or wrong but it is an advantage few have.

    2. libertarian
      October 8, 2019

      Ian Wilson

      They may have done but that doesn’t break any rules

      The WTO GPA is to open up to international competition as much as possible the government procurement of the parties to the agreement.

      Governments are not expected to open up all their procurement and they specifically exclude some sensitive sectors, such as defence-related procurement

  22. Literal
    October 5, 2019

    Of course we shall not buy Irish products if marked as such. As for Scottish products, the jury is out.

  23. Julie Williams
    October 5, 2019

    The unofficial motto of the EU: Do as I say, not as I do.

  24. Glyn Rice
    October 5, 2019

    Even more important that we escape the clutches of the EU. Unfortunately the traitors within government and the remain voting elites would rather have our country dragged into this to try and prove that they, in some perverted way, were right to vote remain.

  25. Mike Wilson
    October 5, 2019

    International trade seems to be fraught with problems. Shame we are not self sufficient in food, energy and goods production. We could be if only we could ever get a government with different ideas. The only things we should import are raw marriage not found here and food that wonā€™t grow here.

    1. sm
      October 5, 2019

      Not too sure that importing raw ‘marriage’ is going to be either easy, profitable or desirable!!!

  26. kees
    October 5, 2019

    So long as Trump is in situ we will have chaos- and so long as Boris/ Cummings is in situ we will have double chaos. But with progress towards pending impeachment in the US and maybe a vote of no confidence in Govt here things might change dramatically- in a short while- we can only hope.

    These other things about trade discrepancies can and should be discussed and sorted by reasonable people at WTO and other relevant venues – alas ‘reasonable’ and decency are qualities sadly missing in today’s political discourse- it seems populism rules for the moment- am afraid.

    1. Oggy
      October 5, 2019

      Populism to you, patriotism to me.

    2. libertarian
      October 5, 2019

      kees says

      Lets scrap democracy .

  27. Pete S
    October 5, 2019

    Any chance now the Scots want out of the EU and a quick trade agreement with the USA ??

    1. Fedupsoutherner
      October 5, 2019

      Sturgeon hates Trump. They have even stopped him having the open at Turnberry. Pathetic lot!

  28. Anonymous
    October 5, 2019

    Trump will be blamed.

    Previous US administrations were no friend to our own aviation industry, which was world beating throughout our alleged industrial nadir.

    Much that was produced then is still keeping our transport industry going today. We’d be in serious trouble without it.

  29. A.Sedgwick
    October 5, 2019

    Remainers – any answers?

    1. Martin in Cardiff
      October 5, 2019

      Answers to what?

      The erroneous understanding of the position that you have taken from John’s rather misleading way of presenting the information?

      Can you ask a specific question, please?

      The only thing that the European Union countries have done wrong – in the opinion of the US-dominated WTO – is to subsidise, by just one, quite particular analysis, the production of Airbus planes.

      If so, then the answer is for that to stop.

      Maybe, rather, if Boeing hadn’t made planes which fell out of the sky, then they would be in a far better position?

      Next?

      1. libertarian
        October 8, 2019

        Marty

        You might want to look up how many Airbuses have fallen out of the sky too. Ah see your problem you dont do fact checking

    2. RichardM
      October 5, 2019

      Yes. Try to read neutral trade experts opinions, rather than the bizarre anti EU, pro Trump nonsense from brexit cultists on here.
      Trump is blocking the WTO court of appeal from appointing judges, meaning the WTO will not be able to confirm EU compliance so could maintain tariffs as long as they like.
      Good luck with your WTO brexit. Trump is paralysing it. Absolute insanity to rely on it with Brexit.

      Reply The EU relies on the WTO for most of its n on EU trade!

      1. Martin in Cardiff
        October 6, 2019

        All the nations of the European Union still have twenty-six others exactly as themselves though.

        Don’t they John?

        The UK is about to abandon all twenty-seven if you have your way, and with no guarantees of a suitable replacement arrangement.

        1. Edward2
          October 6, 2019

          This is ridiculous Project Fear.
          The UK is certainly not going to stop trading into Europe.
          So are you really claiming all European companies will “abandon” their customers in the UK after we leave?
          Really?
          Are you?

      2. Trader
        October 6, 2019

        Blimey. Some reply. On planet earth the EU relies on the WTO for almost non of its non EU trade. John Redwood, you truly have no clue

        1. Edward2
          October 6, 2019

          Odd post considering over 95% of all world trade is carried out under WTO rules.
          Including the EU.

        2. libertarian
          October 8, 2019

          Trader

          Blimey, the EU’s biggest customer is the USA, followed by China

          Can you link me to the trade agreements for these countries ?

  30. Sir Joe Soap
    October 5, 2019

    You’re wrong.

    The EU has dutifully removed its 10% tariff on Japanese cars in return for the Japanese removing tariffs on largely French and Italian exports of wine and cheese. This of course deliberately compromises Japanese-owned UK car production, and continues a 40 year process of hollowing out the UK.

    Your remainer correspondents might wish to try to defend this behaviour against an EU member which is the second largest contributor to their club.

    1. Pete S
      October 5, 2019

      Then why did the UK agree to the FTA. We have a veto, why was it not used ??

      1. GilesB
        October 5, 2019

        Because May signed it without any debate in Westminster.

        Her Majestyā€™s opposition didnā€™t make a bleat.

        I suspect that it fell under some secret agreement that since triggering Art 50 the U.K. would not exercise any influence in the EU on issues that would endure after we have left. A foolish Agreement made absurd by the subsequent extensions!

        In fairness I think that it only came into force 59 days before March 29th 2019.

        Itā€™s just another example of the treachery of Mayā€™s remainers administration

      2. Sir Joe Soap
        October 5, 2019

        Apparently to cultivate “goodwill” with the EU under Mrs May, which like many of Mrs May’s political orchestrations was pointless and stupid.

  31. Bob
    October 5, 2019

    ” The danger is this WTO judgement will take us closer to a broad based trade war between the USA and the EU, just as we have seen develop with the USA and China.”

    If Theresa May hadn’t spent three years trying to overturn the decision of the people to leave the EU, our whiskey exports wouldn’t have been hit by the tariffs. Shame.

    Those involved in trying to prevent Brexit should be permanently excluded from future Honours lists.

    1. Lifelogic
      October 5, 2019

      Indeed and doing this while dishonestly pretending that her putrid W/A was Brexit. A lie she still absurdly maintains.

  32. Iain Moore
    October 5, 2019

    After all the project fear that got the willing support of the BBC who was happy to publicise every hair brained Remainer claim, I note there has been almost complete silence about the punitive tariffs we are going to suffer on Scotch whiskey because of our membership of the EU. Odd that, unsubstantiated Remainer hysteria gets the full headline treatment, factual events that shows the downsides of our EU membership, nothing, nada, zilch. Isn’t it wonderful having an impartial national broadcaster?

    1. tim
      October 5, 2019

      Iain Moore- you mean the British/Brussels brainwashing Corporation.
      AKA the mouthpiece of the EU parastie.

  33. agricola
    October 5, 2019

    I think it best that our trading arrangements around the World are governed by the needs of the UK and it’s 65 million people. Being part of a large political bloc means getting caught by the actions of that bloc. In trade you need flexibility in product , conditions etc., something you lose when combined with the needs of 27 other nations. Advantageous trade is governed by the quality of the product, price and delivery not by the illusion of political clout due to size. We need to do two things. get out of the EU as promised and revitalise the quality of people in government via a general election.

  34. Tabulazero
    October 5, 2019

    I guess you will not mind when Airbus relocate its operations in the UK, its 14,000 jobs and the Ā£6bn it spends directly in the British economy somewhere else on the continent after your hard Brexit.

    Building wings in Broughton before shipping them to Toulouse was always a daft idea. Simpler and cheaper to build everything in Toulouse.

    By the way, you know of course that the EU slapped 25% tariffs on US exports of bourbon in retaliation of the steel tariffs President Trump slapped on steel exports from companies such as British Steel ?

    British steel was apparently a threat to US national security which I find really weird.

    1. Bob
      October 5, 2019

      @Tabulazero
      Wouldn’t it make more sense to relocate the whole of Airbus production to the UK to avoid US tariffs post Brexit?

      1. Tabulazero
        October 6, 2019

        The US is not Airbus main market so no.

        Ps: knowing the UK has a trade surplus with the US and that it is desperate for a deal, i would be careful as to President Trump warm embrace. As Canada.

    2. Anonymous
      October 5, 2019

      Speaking neutrally then .

      EU. Not exactly Green, is it !

    3. libertarian
      October 8, 2019

      Tabby Zero

      Oh you mean following the City all moving to Frankfurt as you predicted too ?

      Anyhow just so you know

      LONDON (Reuters) – European satellite company Eutelsat and aerospace group Airbus have signed a multi-million pound deal to build components of two new communication satellites in Britain.

      The agreement between Eutelsat and Airbus will see key parts of the new satellites, including the platform structure, propulsion system and antennas, manufactured at Airbus facilities in Stevenage and Portsmouth.

      That fact you think its simple and easy to just up and build advanced aircraft wings anywhere shows how little knowledge you posses . The systems embedded in the wings are a specialty of UK manufacture following decades of experience

  35. Everhopeful
    October 5, 2019

    Cheese,wine,whisky.
    Great for America First! Election coming up.

  36. Tabulazero
    October 5, 2019

    Whiskey exports from the UK to the US amount to Ā£1bn. Airbusā€™s contribution to UKā€™sGDP is Ā£8bn.

    If I were you, I would think twice before trading whiskey for aerospace.

    1. steve
      October 5, 2019

      Tabulazero

      “Whiskey exports from the UK to the US amount to Ā£1bn”

      Zero, my friend. I feel obliged to pull you up on that one, most respectfully of course.

      ‘Whiskey’ as you cite, is produced in Ireland. Whisky – without the ‘e’ is produced in Scotland.

      Though given the nasty rhetoric coming from the SNP these days I guess it could be argued Scotland isn’t in the UK either.

      Kind regards

  37. Len Gruel
    October 5, 2019

    Three powers matter today, US China EU. Every other country is weak and vulnerable. Brexit is sheer insanity

    1. Bob Dixon
      October 5, 2019

      So according to you we will all be on gruel

      1. Tabulazero
        October 6, 2019

        No. The UK will be irrelevant.

        That said, 3 years of this Brexit comedy should have prepared the UK for that, no ?

        1. Edward2
          October 6, 2019

          Yet against all your Project Fear predictions, in the last three years we have seen decent growth, lower unemployment, record numbers in work, pay rising, inward investment growing and the stock exchange doing well.

    2. libertarian
      October 8, 2019

      Dear Lennie Porridge

      This power the EU wields, that would be the German military would it? You aren’t worried about Russia at all then… dear oh dear why are all remainers so detached from reality ?

  38. Gareth Warren
    October 5, 2019

    There is always worry of a general recession defined by a excess oof supply.

    Personally I feel much of this has been averted by reducing production in China, but the car industry is clearly in over supply and the US applying the same tariffs to EU produced cars is a likely solution to this.

    Hopefully we will be free of the EU, then it will be a simple trade of UK market share for free US market access.

  39. David J
    October 5, 2019

    Only 26 days of the this ridiculous charade left to play out!
    Surely the EU wonā€™t accept us having the audacity to request any concessions. They can muster up all of their courage and tell us they have had enough with the pathetic and futile extensions and let us go to work out our own future.
    Independence Day please

    1. Andy
      October 5, 2019

      Alas. You face nearer 26 years more of this than 26 days.

      You realise that Brexit does not end when we leave the EU.

      When we leave thatā€™s when Brexit begins.

      Then you have the little matter of making everything better and nothing worse.

      You have zero chance.

      1. Edward2
        October 5, 2019

        Things got better and worse over the last 40 years we were in the EU.
        Stop being so silly.
        Its life.

        1. bill brown
          October 7, 2019

          Edward2

          That is why our standard of living went up that much in the past 40 years?

          1. libertarian
            October 8, 2019

            billy

            Our standard of living has risen due mostly to technological progress , almost none of which has been provided by EU countries outside of UK & Netherlands

      2. L Jones
        October 5, 2019

        Stop blathering, Andy, and just tell us one thing:
        why should we wish to remain shackled to your EU masters failing scheme with all its negative connotations? Or are you so infatuated that you don’t recognise that there are negative connotations?

  40. Andy
    October 5, 2019

    This is an interesting an important topic because it shows the minefield Brexiters face under their beloved WTO rules.

    When does the government ā€˜buying Britishā€™ break the rules of fair trade and become an illegal subsidy? It is not always black and white. We know how much Brexiters love to complain about EU state aid rules. Imagine your shock when you learn WTO rules – which you want us to sign up to – include something very similar.

    It is also worth noting that although the WTO has ruled against the EU and Airbus it is still investigating the US and Boeing – and will rule on that in the coming months.

    Remember those heady days before 2016 when trade just happened and you didnā€™t have to worry about it? Not now. Trump and Brexit are why you are getting poorer.

    1. Edward2
      October 5, 2019

      It is an attempt by WTO to stop trading blocs from exploiting their power and from nations subsidising their virtually nationalised industries with back door grants and subsidies.
      China and France are at the centre of this.
      Costing the UK and USA billions.
      Proper free fair trade is what is best.
      The EU is a protectionist bloc and tries to stop free trade.

    2. Anonymous
      October 5, 2019

      People are poorer because they haven’t had an effective wage rise for 11 years.

      Do the math.

      1. A Play
        October 6, 2019

        We are all homeless and starving to death. Luckily we are rich enough to have food in the bank e.v.e.r.y.o.n.e!

      2. libertarian
        October 8, 2019

        Anon

        Wage growth in the UK reached an 11-year high in the year to June, official figures show.
        Wage growth rose to 3.9% 2.1% above inflation

    3. libertarian
      October 8, 2019

      Andy

      WRONG ( as usual)

      WTO website

      The default position in WTO rules is that subsidies are generally allowed, while EU rules consider subsidies to be generally illegal.
      WTO rules only apply to goods, but EU rules include services too.

      The EU v Boeing arbitration process was suspended in 2012 . The EU are trying to reopen it now.

  41. forthurst
    October 5, 2019

    So we are all being punished because of CAP subsidies, primarily designed to benefit the French. The EU is a French racket and the Common Airbus Policy, in which our share was undervalued by a so-called Investment bank, is just another manifestation of this.

  42. Justice is our name
    October 5, 2019

    is ( neither of which is )

  43. Rule Britannia
    October 5, 2019

    A strange system.

    One company loses out, Boeing. How do they get their money back (shouldn’t tariffs collected go to them until their estimated losses are recovered? So the US government benefits instead?

    Then the USA impose tariffs on businesses that had nothing to do with any of this and in countries that had nothing to do with it. How does that make any sense?

    Then, we are due to leave the EU in about 3 weeks, so how does it make sense for them to impose tariffs on a UK-only product? Will it be removed if/when we leave?

    lastly, if these decisions were made by EU officials and executives in charge of Airbus, then where are the charges against those people? As ever, fat cats get off without consequences.

    This system needs work. A schoolkid could devise a fairer system.

    1. Gareth Warren
      October 5, 2019

      The UK manufactures wings for Airbus

  44. RichardM
    October 5, 2019

    Now we here 17.4m voters also voted to stop eating fresh raspberries.

    1. Edward2
      October 6, 2019

      Odd because I had fresh raspberries only yesterday.
      And very nice they were too.

      More silly Project Fear from you RichardM

    2. libertarian
      October 8, 2019

      RichardM

      I love your parody posts

      British Summer Fruits, the industry body that represents 95% of berries supplied to UK supermarkets Since May last year, almost Ā£320m worth of raspberries were sold in the UK with shoppers spending 16% more on the classically British berry than in the previous year. In the last four weeks alone, the volume of raspberries available in stores has grown by 20%.

  45. Lindsay McDougall
    October 5, 2019

    I want to draw your attention to recent remarks by Michel Barnier. He said that the EU must have customs checks at its borders. If Northern Ireland stays part of the United Kingdom and therefore has a border with the Republic, the EU will insist on the Republic imposing checks and tariffs on its imports from Northern Ireland.

    The Republic believes – or pretends to believe – that this might lead to the break up of the Good Friday Agreement. This is why the EU is giving full support to the Republic’s aim of taking over the North. This is why the EU and the Republic keep referring to ‘the island of Ireland’ as if it were a nation in the making. It is not; it is a geographical area and nothing else. In fudging this issue, the Good Friday Agreement has been unhelpful to Unionists. This is why when people threaten the end of the Good Friday Agreement, I say “Go ahead. Make my day.”

    The Good Friday Agreement is already in its death throes. Sinn Fein haven’t shared government at Stormont for over two years and etc Ed

  46. margaret
    October 6, 2019

    Wouldn’t it be good if we could make wings for UK planes and sell the whole damn thing . Hawker Sidley , AV Roe, Rolls Royce ..we were so undermined

  47. bill brown
    October 6, 2019

    Sir JR

    And in 8 months the case against Boeing will be completed and the Eu will be allowed to impose sanctions against the US by the WTO, this does not solve anything and needs to be sorted out , before these this happen

    1. libertarian
      October 8, 2019

      Billy

      The EU report into Boeing was suspended during arbitration in 2012

      They are trying to reopen it in retaliation for being found guilty of ILLEGALLY subsidising ( also against their OWN rules ) Airbus

      You support this utter nonsense

  48. Lindsay McDougall
    October 6, 2019

    The French and German Governments each have a 20% share in Airbus so the subsidies are not surprising. Once construction of the present generation of planes is complete, we should disentangle ourselves from Airbus and build our own unsubsidised civil aircraft. We should ask America to change its ‘Buy American’ policy to ‘Buy American or British’ in exchange for guaranteeing no subsidies. In negotiating a free trade deal with America, we too have a shopping list. If the Americans want to slap anti-subsidy tariffs on Airbus products, let them – so much the better for us.

    1. bill brown
      October 7, 2019

      Lindsay Mcdougall,

      I am afraid you have lost the plot here.
      Tariffs of any sort is an hinderance to free world trade and therefore less prosperity, thinking that tariffs on the rest of Europe will not hurt us is rather naive

      1. libertarian
        October 8, 2019

        Billy

        Lindsay isn’t the only one to have lost the plot

        Do you not know that your beloved EU imposes massive tariffs on non members

        dear oh dear

Comments are closed.