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Home » Blog » WTO recent update on boat importation rules of US made pleasure boats to EU

Blog: WTO recent update on boat importation rules of US made pleasure boats to EU

By Admin | June 26, 2018

18 May 2018

Council for Trade in Goods
Committee on Safeguards

The following communication, dated 18 May 2018, is being circulated at the request of the
Delegation of the European Union.

Pursuant to Article 12.5 of the Agreement on Safeguards, and in accordance with the agreed
format for notifications (G/SG/1, 1 July 1996; amended 19 October 2009, G/SG/1/Rev.1-
G/SG/N/6/Rev.1-G/SG/89), the European Union provides the immediate notification to the Council
for Trade in Goods of the proposed suspension of concessions and other obligations referred to in
paragraph 2 of Article 8.
1. Which Member is proposing suspension of concessions and other obligations referred
to in Article 8.2
The European Union.
2. Specify the measure, the product subject to the measure, the WTO document that
notified the safeguard measure, and the Member imposing the measure in relation to
which the Member is proposing suspension of concessions and other obligations referred
to in Article 8.2 of the Agreement on Safeguards
On 8 March 2018 the United States of America (“United States”) adopted safeguard measures in
the form of a tariff increase on imports of certain steel and aluminium products (at rates of 25%
and 10%, respectively), effective from 23 March 2018 and with an unlimited duration. The
effective date of the tariff increase with respect to the European Union was deferred to 1 May and
subsequently to 1 June 2018. Notwithstanding the United States’ characterisation of these
measures as security measures, they are safeguard measures.
The United States failed to notify the WTO Committee on Safeguards under Article 12.1(c) on
taking a decision to apply safeguard measures.
3. Describe the proposed suspension of concessions and other obligations referred to in
Article 8.2 of the Agreement on Safeguards, and the proposed date from which it will
come into effect
The European Union provides this written notice in order to achieve the highest degree of legal
certainty that, in all the circumstances, its rights to suspend the application of substantially
equivalent concessions or other obligations pursuant to Article 8 of the Agreement on Safeguards
are fully protected. The European Union reserves the right to withdraw, modify, supplement or
replace this notification, and/or make a further notification or notifications, should it deems that
appropriate, including in light of any subsequent developments.

The proposed suspension of substantially equivalent concessions and other obligations under GATT 1994 to the trade of the United States takes the form of an increase in duty of 10%, 25%, 35% and 50% on selected products originating in the United States, as indicated in Annex I and Annex II. The substantially equivalent concessions or other obligations under GATT 1994 were calculated as indicated in Annex III.
Without prejudice to the effective exercise of its right to suspend substantially equivalent concessions or other obligations referred to in Article 8.2, the European Union hereby reserves its right to apply the proposed suspension from 20 June 2018 and until Annex II applies, as regards Annex I, and from 23 March 2021 or from the fifth day following the date of the adoption by, or notification to, the WTO Dispute Settlement Body of a ruling that the United States’ safeguard measures are inconsistent with the relevant provisions of the WTO Agreement, if that is earlier, and until the United States’ safeguard measure is lifted, as regards Annex II.

89039291 – Motor boats for pleasure or sports, of a length <= 7,5 m (other than outboard motor boats) – 25%
89039299 – Motor boats for pleasure or sports, of a length > 7,5 m (other than outboard motor boats and excl. seagoing motor boats) – 25%

The total amount of additional ad valorem duties of a maximum rate of 25% in Annex I reflects the United States’ tariff increase of 25% on imports of “carbon and alloy flat products” and “carbon and alloy long products”4 from the European Union into the United States. These are the steel products for which the United States’ safeguard measures have not been taken as a result of an absolute increase in imports.

The total amount of additional ad valorem duties of a maximum rate of 10%, 25%, 35% and 50% on imports of the products listed in Annex II reflects the United States’ tariff increase of 10% on imports of the aluminium products5 and of 25% on imports of “carbon and alloy pipe and tube products”, “carbon and alloy semi-finished products” and “stainless steel products”6 from the European Union into the United States.

The imports of eight products from the United States into the European Union (of US $ 932 million in 2017) are included in both Annexes because they would be subject to duties in both Annexes. The total amount of imports from the United States into the European Union in 2017 ($ 7.1 billion in 2017) includes these imports only once.

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