The United States and the European Union agreed this week to suspend all retaliatory tariffs exports between the two imposed in the Airbus and Boeing disputes for a period of four months. This move will allow both parties to concentrate on resolving the ongoing trade dispute between the pair.
Back and forth
In October 2019, the US was given the approval to impose additional duties on approximately $7.5 billion in EU products as a result of the World Trade Organization Large Civil Aircraft litigation. Moreover, in September 2020 the EU was authorized to impose tariffs affecting $4 billion in US trade against US subsidies to Boeing.
A series of other counters were made along the way. Nonetheless, with a breakthrough in talks this month, the European Commission shares that the suspension offers an important boost to exporters.
After a call with US president Joe Biden on March 5th, European Commission president Ursula von der Leyen, shared the following on her Twitter:
“As a fresh start for our Flag of European UnionFlag of United States partnership we agreed to suspend all tariffs related to the Airbus-Boeing disputes on aircraft & non-aircraft products for an initial period of 4 months. We also committed to solving these disputes.”
On the right track
Meanwhile, European Commission EVP and Trade Commissioner Valdis Dombrovskis, added the following, according to a statement seen by Simple Flying.
“This is a significant step forward. It marks a reset in our relationship with our biggest and economically most important partner. Removing these tariffs is a win-win for both sides, at a time when the pandemic is hurting our workers and our economies. This suspension will help restore confidence and trust, and therefore give us the space to come to a comprehensive and long-lasting negotiated solution. A positive EU-U.S. trade relationship is important not only to the two sides but to global trade at large.”
Some light at the end of the tunnel
Altogether, we reported last month that France was discussing solutions with the US to find a solution to these tariffs. So, fortunately, there is now progress when it comes to ending this saga.
Simple Flying reached out to Airbus and Boeing for comment on these reports. We will update the article with any further announcements from the carrier.
What are your thoughts about the United States and the European Union agreeing to suspend tariffs in the Airbus and Boeing dispute? Do you feel that this is a good move by both parties? Let us know what you think of the situation in the comment section.