No New Tariffs on EU Stone, Quartz Surfaces – For Now

WASHINGTON – Granite, travertine and quart-surfaces exporters in the European Union (EU) caught a break last week when their products failed to appear on the list of goods subject to a new tariff.

That may be only temporary relief, however.

In announcing the ruling from the World Trade Organization (WTO) allowing new duties in a 15-year old dispute, the U.S. Trade Representative (USTR) made it a point that the action is far from complete.

“The U.S. has the authority to increase the tariffs at any time, or change the products affected,” according to the USTR statement.

A WTO arbitrator ruled on Oct 2 that some EU members offered illegal subsidies to European aircraft manufacturer Airbus in a case stretching back nearly 15 years. As a result, the United States can take “countermeasures,” or levy tariffs, on specified EU goods and materials whether aircraft-related or not.

A list released earlier this spring by the USTR of EU goods possibly facing tariffs included dimensional granite, travertine and other unspecified natural stone, as well as quartz surfaces. Marble and other calcareous stones were excluded.

The WTO ruling allows a tariff of up to 100% of customs value on EU goods. The USTR opted for a lesser 25% tariff on a shortened list of imports from France, Germany, Spain and the United Kingdom – the four EU countries that were in the original 2004 complaint — that includes mainly agricultural products, food and clothing.

The USTR statement noted that the U.S. trade officials “will continually re-evaluate these tariffs based on our discussions with the EU.”

In this case, the WTO rejected the EU’s argument that U.S.-based aircraft manufacturer Boeing also received government subsidies. However, the EU is pursuing a similar line in other import/export actions.