EU and US are ready to resolve Airbus and Boeing trade disputes 17 years later

The EU and the United States are poised to resolve a 17-year dispute over aircraft subsidies, removing the threat of billions of dollars in punitive tariffs on the economy to boost cross-Atlantic relations. ..

Diplomats and officials confirmed Monday night that two days of intensive negotiations in Brussels left the EU and Biden administrations. Forefront of transaction confirmation About Airbus and Boeing subsidy rules. The breakthrough will be finalized at the first EU-US summit meeting of US President Joe Biden in Brussels on Tuesday.

People close to the talks said the governments of Airbus’ three EU home countries, Germany, France and Spain, are discussing an agreement that could be confirmed on Tuesday morning if there were no last-minute obstacles.

The deal is likely to take the form of a multi-year agreement on subsidy limits, according to people briefed at the meeting.

The breakthrough lifts a cloud of uncertainty in the aviation sector while removing the threat that conflicts could again hit EU and US consumer goods with punitive tariffs.

These obligations for a wide range of products, from French wines to American spirits and sugar cane molasses pause After the EU and the US agreed to lift them for four months in March and begin negotiations on a solution.

$ 7.5 billion

Additional tariffs imposed by the United States on European goods in October 2019

The Airbus-Boeing conflict is one of the longest-running battles in the history of the World Trade Organization. We acknowledge that disagreements between the two may be possible. Increasingly affordable They are trying to build closer cooperation in dealing with China’s state capitalist model.

EU Trade Commissioner Valdis Dombrovskis met with US Trade Representative Katherine Tai and Secretary of Commerce Gina Raimondo for several days prior to the summit.

The Thai office declined to comment.

Companies on both sides of the Atlantic have long sought a solution. The issue became more urgent after the United States targeted European exports. $ 7.5 billion worth of additional tariffs In October 2019, the EU imposed additional Tariffs on US $ 4 billion exports last year. Both measures were in line with the WTO’s decision in favor of each side.

However, both the United States and the EU have long been found to have failed to properly implement the WTO Panel’s ruling on illegal subsidies for aircraft manufacturing champions.

EU and US trade authorities emphasized the complexity of the conflict and challenged the other claim that both sides adhered to the WTO’s decision. The nature of subsidies on both sides of the Atlantic is also very different, with EU authorities pointing out a number of US Secretary of Defense contracts as an example.

When the Airbus-Boeing conflict ends, one important stimulus in trade relations is removed, while the other stimulants remain.

Brussels raised tariffs on U.S. goods last month Tariffs in the Trump era About European steel and aluminum.

The economies of both countries have also not completely closed the gap. Digital tax, This issue is currently linked to broader international negotiations.

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EU and US are ready to resolve Airbus and Boeing trade disputes 17 years later

Source link EU and US are ready to resolve Airbus and Boeing trade disputes 17 years later

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