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having regard to the decision taken by the arbitrator of the World Trade Organisation (WTO) in the Airbus subsidy dispute (DS316) on 2 October 2019, authorising US countermeasures on EU exports worth USD 7,5 billion (EUR 6,8 billion),

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having regard to the formal decision taken by the WTO’s Dispute Settlement Body on 14 October 2019 giving the green light for those countermeasures,

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having regard to the US decision to introduce a new tariff of 25 % ad valorem on some agri-food products and some non-agricultural products and 10 % ad valorem on non-agricultural products, as of 18 October 2019,

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having regard to the relevant articles in Regulation (EU) No 1144/2014 of the European Parliament and of the Council of 22 October 2014 on information provision and promotion measures concerning agricultural products implemented in the internal market and in third countries and repealing Council Regulation (EC) No 3/2008 (1) (hereinafter ‘the Promotion Regulation’) and to the Commission Implementing Decision of 18 November 2019 on the adoption of the work programme for 2020 of information provision and promotion measures concerning agricultural products implemented in the internal market and in third countries,

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having regard to the relevant articles in Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products (2) (Single Common Market Organisation (SCMO) Regulation),

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having regard to Rule 132(2) and (4) of its Rules of Procedure,

A.

whereas the USA is the number one destination for agricultural exports from the EU-28, having accounted for EUR 22,3 billion in 2018 (16,2 % of all agri-food exports), and therefore represents an irreplaceable market in terms of both value and volume;

B.

whereas agri-food exports worth EUR 4,3 billion (60 % of the total value of the countermeasures) will be hit by the new tariffs, which will be equivalent to EUR 1,1 billion;

C.

whereas the United Kingdom, France, Spain, Italy, Germany and Ireland are the main countries affected by the US decision, while the agri-food sectors of other EU Member States will also be adversely affected;

D.

whereas the main agricultural products targeted by the US sanctions will be emblematic EU products with a very high added value that are often protected under EU quality schemes (wines and spirits such as single malt whisky, olive oil, and dairy products such as butter and cheese);

E.

whereas other agricultural products, such as table olives, pork, coffee, sweet biscuits, processed fruit, citrus, mussels, liquors and cashmere are also targeted, albeit to a lesser extent;

F.

whereas farmers and operators in the agri-food chain are, following the Russian embargo, once again victims of a non-agricultural trade conflict beyond their influence and whereas the US decision to apply these tariffs may stand indefinitely until the Member States comply with the WTO resolution on the Airbus dispute;

G.

whereas the US countermeasures will add economic and legal uncertainty for European producers in a sector already volatile by its very nature, and more instability to the EU internal market, which is having to contend with the disturbance caused by the Russian embargo and having to prepare for the economic fall-out from a potential UK withdrawal from the EU;

H.

whereas the USA may, according to provisions in US law, introduce a so-called tariff carousel that would have a knock-on effect on other products, amplify the economic consequences of the countermeasures and have a disproportionate impact on the agri-food sector;

I.

whereas the dispute on Boeing subsidies is still pending before the WTO;

J.

whereas for some sectors, such as table olives (already affected by the application of US tariffs since November 2017) and olive oil, the US decision will further jeopardise the already fragile situation of the internal market, while for other sectors such as wine, whisky and dairy, it risks causing serious disturbances in the market overall; whereas such a decision would therefore threaten growth, investment and job creation and lead to a significant loss of competitiveness and market share — which has taken years to establish and from which it will be difficult to recover;

K.

whereas the tariffs will lead to significant price increases for consumers and economic losses and job losses for companies on both sides of the Atlantic, ultimately benefiting producers from outside the EU and the US;

L.

whereas according to the current EU rules, promotion campaigns that have already been approved and target the US market cannot be reprogrammed, and some actions that have already been taken to promote very high value products may prove to be fruitless if the US tariffs are to be applied;

M.

whereas EU agriculture, which by its very nature has particular sensitivities, is increasingly integrated in international markets, thus underlining the importance of constructive trade relations overall and of maintaining a food supply chain with high-quality produce that meets customers’ demand;

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