COMMISSION IMPLEMENTING REGULATION (EU) 2021/1123

of 8 July 2021

suspending commercial policy measures concerning certain products from the United States of America imposed by Implementing Regulation (EU) 2020/1646 following the adjudication of a trade dispute under the Dispute Settlement Understanding of the World Trade Organization

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) No 654/2014 of the European Parliament and of the Council of 15 May 2014 concerning the exercise of the Union’s rights for the application and enforcement of international trade rules and amending Council Regulation (EC) No 3286/94 laying down Community procedures in the field of common commercial policy in order to ensure the exercise of the Community’s rights under international trade rules, in particular those established under the auspices of the World Trade Organization (1), and in particular paragraph 3 of Article 7 thereof,

Whereas:

(1) On 7 November 2020, the Commission adopted Implementing Regulation (EU) 2020/1646 (2) on commercial policy measures concerning certain products from the United States of America (the United States) following the adjudication of a trade dispute under the Dispute Settlement Understanding of the World Trade Organization (WTO) that provides for the application of additional customs duties on imports into the Union of a number of products originating in the United States.

(2) Recital 9 of Implementing Regulation (EU) 2020/1646 provides that the Commission intends to suspend the application of the Regulation in case of suspension by the United States of the countermeasures against imports of certain products from the European Union, in relation to the WTO disputes on large civil aircraft.

(3) On 9 March 2021, following an understanding reached with the United States to mutually suspend all measures for a period of four months, the Commission adopted Implementing Regulation (EU) 2021/425 (3) suspending commercial policy measures concerning certain products from the United States of America imposed by Implementing Regulation (EU) 2020/1646 following the adjudication of a trade dispute under the Dispute Settlement Understanding of the World Trade Organization which suspended the application of Implementing Regulation (EU) 2020/1646 until 10 July 2021.

(4) On 15 June 2021, Executive Vice President Valdis Dombrovskis and U.S. Trade Representative Katherine Tai reached an understanding on a cooperative framework for large civil aircraft, whereby ‘each side intends to suspend application of its countermeasures for a period of 5 year’.

(5) In accordance with Article 7(3) of Regulation (EU) No 654/2014, ‘where it is necessary to make adjustments to commercial policy measures adopted under the Regulation, subject to Article 4(2) and (3), the Commission may introduce any appropriate amendments in accordance with the examination procedure referred to in Article 8(2)’.

(6) The measures provided for in this Regulation are in accordance with the opinion of the Trade Barriers Committee, established by Regulation (EU) 2015/1843 of the European Parliament and of the Council (4),

HAS ADOPTED THIS REGULATION:

Article 1 The application of Implementing Regulation (EU) 2020/1646 is hereby suspended for a period of five years from 11 July 2021. Accordingly, without prejudice to any further suspension or modification, including earlier reinstatement, the duties provided for in Implementing Regulation (EU) 2020/1646 shall again apply with effect from and including 11 July 2026.

Article 2 This Regulation shall enter into force on 11 July 2021.

This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 8 July 2021. For the Commission The President Ursula VON DER LEYEN

(1) OJ L 189, 27.6.2014, p. 50; amended by Regulation (EU) 2015/1843 (OJ L 272, 16.10.2015, p. 1) and by Regulation (EU) 2021/167 (OJ L 49, 12.2.2021, p. 1).

(2) Commission Implementing Regulation (EU) 2020/1646 of 7 November 2020 on commercial policy measures concerning certain products from the United States of America following the adjudication of a trade dispute under the Dispute Settlement Understanding of the World Trade Organization (OJ L 373, 9.11.2020, p. 1).

(3) Commission Implementing Regulation (EU) 2021/425 of 9 March 2021 suspending commercial policy measures concerning certain products from the United States of America imposed by Implementing Regulation (EU) 2020/1646 following the adjudication of a trade dispute under the Dispute Settlement Understanding of the World Trade Organization (OJ L 84, 9.3.2021, p. 16).

(4) Regulation (EU) 2015/1843 of the European Parliament and of the Council of 6 October 2015 laying down Union procedures in the field of the common commercial policy in order to ensure the exercise of the Union’s rights under international trade rules, in particular those established under the auspices of the World Trade Organization (codification) (OJ L 272, 16.10.2015, p. 1).