The World Trade Organization has ruled U.S. subsidies to Boeing merit tariffs from the European Union. American Soybean Association Vice President and Valley Springs, South Dakota farmer Kevin Scott says that type of ruling could make it even more difficult to deal with the E.U. especially on ag issues and a possible free trade bilateral deal.
He says there constantly seems to be problems with the E.U. as far as non-agricultural issues negatively impacting any farm commodities being traded.
One of the major questions is should the U.S. withdraw from the WTO as the Trump administration has been talking about. Scott says it’s important to have some group in place that can foster trade however it doesn’t do any good if countries don’t abide by that group’s rules.
U.S. Trade Representative Robert Lighhizer criticized the recent WTO ruling saying the only retaliation authorized was related to a Washington State tax break. And the state of Washington fully repealed that tax rate reduction.
