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Washington Outlook Archive

European Union Plans To Drop Punitive Tariffs On Textiles Apparel And Other Products

James A. Morrissey, Washington Correspondent

European Union officials say they plan to drop some $4 billion in punitive tariffs levied on a number of US exports, including textiles and apparel, in retaliation against what they said were illegal subsidies. After the World Trade Organization agreed, Congress repealed the export subsidies, and the sanctions are expected to be lifted January 1. The punitive tariffs, which had been started at 5 percent in March, had increased each month to the current level of 12 percent. They appear to have had a relatively minor impact on exports of apparel and home furnishings, but yarn exports were down significantly.

November 2004




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