Oral Question: US attack on the EU’s CAP subsidies

Question for oral answer to the Commission (Rule 128) by Czesław Adam Siekierski, on behalf of the Committee on Agriculture and Rural Development and Bernd Lange, on behalf of the Committee on International Trade on the US attack on the EU’s CAP subsidies.

Question for oral answer – O-000073/2018
to the Commission
Rule 128
Czesław Adam Siekierski, on behalf of the Committee on Agriculture and Rural Development
Bernd Lange, on behalf of the Committee on International Trade

Subject: US attack on the EU’s CAP subsidies

Almost one year after the US antidumping (AD) and countervailing duty (CVD) investigations on Spanish exports of ripe olives were initiated, we now know the final tariffs that the US Government has announced for Spanish companies. In some cases, contrary to the Commission’s expectations, the CVD are even higher than the AD for some of these companies.

Since the entry into force of the first temporary tariffs imposed by the US Government, which are lower than the final ones announced on 12 June, Spanish exports to the US have been reduced by 42.4 % in the first quarter of the year compared to the same period of 2017.

Given that the CAP subsidies investigated fall within green box aid as they are decoupled from production and not trade-distorting, and are consequently not countervailable under Article 2 of the WTO agreement, the US action is an aggressive move against the EU’s agricultural policy, and could be a precedent for other sectors.

What actions does the Commission now propose to deal with this situation?

Does the Commission intend to challenge the US at the WTO?

View in the Parliament website.

Source: European Parliament

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