VDMA priorities for WG 10

Below you will be able to find the VDMA priorities for WG 10, as laid down in our position paper called "the priorities of VDMA for the Trade and Technology Council between the EU and US":

1) Conclude a trade agreement on the elimination of industrial tariffs:

VDMA believes that the conclusion of a trade agreement between the EU and US on the elimination of industrial tariffs should be listed as a priority for this working group. The US tariff rates in our sector range from duty free (for products such as construction equipment and packaging machinery) to a peak for certain ball bearings of 9%. Although these tariffs are relatively low, their complete elimination would result in cost savings of €850 million per year in the transatlantic mechanical engineering sector.

2) Reach a durable solution for the Airbus-Boeing dispute on aviation subsidies:

VDMA urges the two sides to reach a durable solution for the Airbus-Boeing dispute between the EU and US. This solution must regulate state aid for the civil aircraft industry. Although the tariffs in the Airbus-Boeing dispute have been suspended for 5 years, the mechanical engineering industry was affected by these tariffs. Manufacturers of certain tools, induction furnaces and special excavators had for example been impacted by the US retaliatory tariffs.

3) Reach a durable solution to US punitive tariffs under Section 232 of the Trade Expansion Act of 1962:

VDMA continues to advocate for a complete elimination of the US tariffs on steel and aluminium imports from the EU, as such imports do not pose any threat to the national security of the US. However, we also believe that pragmatism is important in EU-US trade relations. Moreover, the steel and aluminium dispute has been one of the biggest transatlantic trade obstacles. Therefore, we support the agreement of 31 October 2021 between the EU and the US that will suspend US tariffs on large volumes of steel and aluminium imports from the EU. We also hope that this momentum will ultimately lead to the complete elimination of the tariffs imposed under Section 232 of the Trade Expansion Act of 1962.

4) Eliminate unreasonable cross-border restrictions on business travellers:

VDMA believes that the unfair American entry restrictions on business travellers from Europe must be addressed by this working group. These restrictions lack a sound justification and continue to burden transatlantic business. We call for freedom of travel for business travellers between the Schengen Area and the United States.

5) Reform of the World Trade Organization (WTO):

VDMA believes that the EU and US must work together to reform and to strengthen the role of the World Trade Organization (WTO). First, a reform of the WTO's dispute settlement mechanism, including the Appellate Body, is urgently needed. Second, the WTO Secretariat needs to be strengthened in the monitoring of rules as well as in the enforcement of rules. Third, it is important for the engineering industry that new rules are created to address issues such as industrial subsidies, State-owned enterprises and forced technology transfers.