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EU, US reach deal to end Airbus-Boeing trade dispute | News – Atlanta, Georgia

Atlanta, Georgia 2021-06-15 08:37:00 –

Brussels (AP) — The United States and the European Union will end a damaging dispute over subsidies to rival plane makers Boeing and Airbus on Tuesday, phased out multi-billion dollar fine tariffs. An agreement has been reached, the US trade envoy said.

US Trade Representative Katherine Tai said both sides had reached a five-year agreement to suspend tariffs at the heart of the dispute. She said that if US companies couldn’t “fairly compete” with European companies, they could be reimplemented.

“Today’s announcement solves a long-standing frustration in US-EU relations,” Thailand said when President Joe Biden met with EU leaders in Brussels. “Instead of fighting one of our closest allies, we are finally facing a common threat.”

Trade dispute Soaring under the Trump administrationAnd, retaliatory obligations have been imposed on companies unrelated to aircraft production, from French winemakers to German cookie bakeries in Europe and US spirits producers in the United States.

The U.S. imposed tariffs on European exports that could reach $ 7.5 billion in 2019 after the World Trade Organization ruled that the EU did not comply with its decision on subsidies to France-based Airbus. .. The EU retaliated in November last year with a disciplinary obligation of up to $ 4 billion after the WTO ruled that the United States had provided illegal subsidies to Seattle-based Boeing.

In March, a few weeks after Biden took office, both sides Agreed to suspend tariffs.. The outage began on March 11th for four months. The new agreement will officially come into effect on July 11.

Ursula von der Leyen, President of the European Commission, said:

According to EU authorities, both sides also said they would work together to analyze and address “third-party non-market practices that could harm our large commercial aviation sector.”

“We will work together to challenge and counter China’s non-market practices in this sector in specific ways that reflect our standards for fair competition,” Thailand said. “

Airbus, headquartered in France and also in Germany and Spain, welcomed the agreement.

“This provides the basis for creating a fair competition that we have advocated since the beginning of this controversy, and avoids losing tariffs that add to the many challenges facing the industry. You can do that, “said an Airbus spokeswoman in a statement.

The French Minister of Finance and the Minister of European Affairs also welcomed the deal.

“We will ultimately focus on putting these differences behind and define conditions for fair competition on a global scale to support the strategic aerospace sector for both Europe and the United States. You will be able to do it, “they said. In a joint statement.

Despite the breakthrough, the deal does not end the Trump-era Atlantic slave trade line. Former US President also slapped EU steel and aluminum tariffs. The move was justified as a measure to protect US national security, most of which infuriated NATO’s allies, European nations.

The so-called Article 232 procedure hurt European producers and raises the cost of steel for American companies. The EU has retaliated by raising tariffs on products such as US-made motorcycles, bourbon, peanut butter and jeans.

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Samuel Petrequin of Brussels and James Keaten of Geneva contributed to this report.

Copyright 2021 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.



EU, US reach deal to end Airbus-Boeing trade dispute | News Source link EU, US reach deal to end Airbus-Boeing trade dispute | News

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