Saturday, June 25, 2022

US and EU reach agreement to end 17-year dispute over Boeing-Airbus deal

President Joe Biden on Tuesday agreed with the leaders of the European Union (EU) to end a trade dispute over aircraft subsidies by suspending fares to Boeing and Airbus, officials said.

“Today, the United States and the European Union have made a major breakthrough in the Boeing-Airbus trade dispute, which has lasted more than 16 years,” Biden said in a White House statement. statement. “The US and the EU have agreed to suspend our tariffs for five years, and we are committed to ensuring a level playing field for our businesses and our workers.”

The trans-Atlantic dispute over aircraft subsidies would come to an agreement earlier this year. The agreement officially enters into force on July 11 – phasing out tariffs worth $ 11.5 billion for a period of five years.

The dispute over aircraft subsidies has continued since 2004 and increased last year after the US Trade Representative’s Office (USTR) said in February 2020 that it would increase tariffs on aircraft imported from the EU by 5 percent.

U.S. Trade Representative Katherine Tai told reporters that the United States could reintroduce tariffs if companies are unable to “compete fairly” with those in Europe.

Read Also:  Biden's inflation plan upends thinking on jobs sent overseas
Epoch Times Photo
U.S. Trade Representative Katherine Tai speaks during a hearing with the House Ways and Means Committee in Capitol Hill on May 13, 2021 in Washington DC. (Anna Moneymaker / Getty Images)

“Today’s announcement is a long-standing annoyance in the relationship between the US and the EU,” Tai said as Biden met with EU leaders in Belgium. “Instead of fighting with one of our closest allies, we are finally coming together against a common threat,” she added, referring to China.

‘We have agreed to work together to challenge and counter China’s non-market practices in this sector in specific ways that reflect our standards of fair competition. This includes collaboration on inbound and outbound investments and technology transfer. ”

In addition to discussing aviation subsidies, Biden also expressed with the leaders of the three Baltic countries – Estonia, Latvia and Lithuania – the ’emerging security challenge posed by China’, and thanked the leaders for the steps they had taken to to support a reliable 5G platform and not to accept the Huawei technology of China in their systems.

“The US and the EU will work together in specific ways to reflect our high standards, including cooperation on inbound and outbound investment and technology transfer,” Biden said. “This is a model we can build on for other challenges facing China’s economic model.”

Read Also:  US disagrees with Germany on Nord Stream 2 pipeline, sees it as a 'threat to Europe's energy security'

The European Union also told Biden during the NATO summit that it wanted to reach an agreement on metal tariffs, but Ursula von der Leyen, president of the European Commission, noted that the priority was aircraft subsidies.

Epoch Times Photo
Epoch Times Photo
EU Commission President Ursula von der Leyen (L), President Joe Biden and President of the European Council Charles Michel arrive in Brussels on 15 June 2021 for an EU-US summit in Brussels (Brendan Smialowski / AFP via Getty Images)

Biden has so far mentioned no plans to raise tariffs on steel and aluminum in the EU – which was introduced by his predecessor, President Donald Trump. Trump said at the time that the tariffs were part of an effort to protect American industry and workers from what he described as unfair international competition.

Airbus, with its headquarters in France but also centers in Germany and Spain, welcomed the agreement.

‘It will provide the basis for creating a level playing field that we have advocated for since the beginning of this dispute. It will also avoid lose-lose rates that only contribute to the many challenges our industry faces, ‘an Airbus spokesman said in a statement.

The Associated Press contributed to this report.

Of NTD News

.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news
- Advertisement -