Define the following terms, indicated in bold in the data: 1. Tariff 2. Subsidy 3. Dumping. EU

Define the following terms, indicated in bold in the data:

1. Tariff 

2. Subsidy 

3. Dumping.

Transcribed Image Text:

EU Stands Up For Spanish Olives Against US Tariffs At WTO The tariffs on Spanish black olives opened a new chapter in the US-EU trade war saga last year. Now the European Union has adopted a firm stance by announcing that the European Com- mission will challenge the US's tariffs in the World Trade Organization (WTO). These tariffs do not only have a big impact on Spanish olive exports, but they also represent a threat to the European Common Agricultural Policy (CAP). "The duties imposed by the United States on black olives from Spain are unjustified, unwar- ranted and go against the rules of the World Trade Organisation. Tomorrow, we are taking this case to the WTO dispute settlement sys- tem, requesting consultations with the US," tweeted last Monday the European Commis- sioner for Trade, Cecilia Malmstrm. Since August 2018, the US has applied a tariff of 34.75% on imports of Spanish black olives in terms of anti-subsidy and anti-dumping du- ties. The argument is that Spanish producers compete at an unfair advantage because they benefit from the aid of the CAP. According to Californian olive growers, the price of Spanish olives in the US was even lower than on the Spanish domestic market, which led the US Department of Commerce (DOC) to launch an investigation last summer into unfair competi- tion and dumping. Meanwhile, the Spanish producers are already suffering the economic consequences, espe- cially because the US is one of the main export markets of the product. It was reported that the exports of black olives to the US had fallen by 72% during the first two months of the appli- cation of the tariff. In August 2018, the first month of application of the definitive tariffs, sales to the US fell by 70%, from 3.2 million kilos in the same month of the previous year to just over 1 million kilos in 2018. Spanish olive producers claim that if the tariff remains in place, then there is bound to be an significant increase in unemployment in the agricultural sector. Source: Adapted from EU stands up for Span- ish olives against US tariffs at WTO by Ana Garcia Valdivia, January 30, 2019, Forbes.com