EU and US reach agreement to end Airbus-Boeing trade dispute | national news
BRUSSELS (AP) – The United States and the European Union reached a deal on Tuesday to end a damaging dispute over subsidies to rival aircraft makers Boeing and Airbus and phase out billions of dollars in punitive tariffs, a declared the American envoy to trade.
U.S. Trade Representative Katherine Tai said the two sides reached a five-year deal to suspend tariffs at the center of the dispute. She said they could be reimplemented if US companies are unable to “compete fairly” with those in Europe.
“Today’s announcement resolves a long-standing irritant in US-EU relations,” Tai said as President Joe Biden met with EU leaders in Brussels. “Instead of fighting with one of our closest allies, we are finally coming together against a common threat. “
The trade dispute exploded under the Trump administration, and has seen tariffs imposed on a range of businesses that have nothing to do with aircraft production, from French winegrowers to German bakers in Europe and American spirits producers in the United States, among others. .
The United States imposed what could have amounted to $ 7.5 billion in tariffs on European exports in 2019 after the World Trade Organization ruled the EU failed to comply its decisions on subsidies to Airbus, based in France. The EU hit back last November with up to $ 4 billion in punitive tariffs 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, the two sides agreed to suspend tariffs. This suspension began on March 11 for four months. The new agreement will officially enter into force on July 11.
“This really opens a new chapter in our relationship as we move from litigation to cooperation on airplanes – after 17 years of dispute,” said European Commission President Ursula von der Leyen.
Despite the breakthrough, the deal does not end the Trump-era transatlantic trade feud. The former US president also imposed taxes on EU steel and aluminum. The move infuriated European countries, most of them NATO allies, as it was justified as a measure to protect US national security.
The so-called Article 232 procedure harms both European producers and increases the cost of steel for American companies. The EU retaliated by increasing tariffs on products like US-made motorcycles, bourbon, peanut butter and jeans.
Samuel Petrequin in Brussels and Jamey Keaten in Geneva contributed to this report.
Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.