The European Union and the United States have agreed to suspend for four months all mutually accepted duties on exports from both countries, imposed as a result of a long-standing struggle between aircraft manufacturers Airbus and Boeing. This is stated in the statement European Commission.
According to the European Commission, the suspension of duties will allow both parties to focus on resolving this competitive dispute. The decision is an important incentive for EU exporters, as the US imposed tariffs on EU exports to the US in the amount of $ 7.5 billion. Likewise, EU tariffs on US exports to the EU worth about $ 4 billion will be suspended.
“This is a significant step forward. This marks a reset in our relationship with our largest and most economically important partner. Removing these tariffs is a win-win for both sides at a time when the pandemic is hurting our workers and our economy. This suspension will help restore confidence and trust and therefore enable us to arrive at a comprehensive and long-term negotiated solution. Positive trade relations between the EU and the US are important not only for both sides, but also for world trade in general, ”commented Valdis Dombrovskis, Executive Vice President of the European Commission and Trade Commissioner.
Disputes between the EU and the US on subsidizing aircraft manufacturers have been going on since 2004. Brussels accused Washington of subsidizing Boeing, and the United States complained to the WTO about subsidies to the European aircraft manufacturer Airbus from the UK, Germany, Spain and France.
In October 2019, the WTO authorized the United States to take countermeasures against European exports worth up to $ 7.5 billion, and the United States imposed those tariffs on October 18, 2019.
In October 2020, the WTO authorized the EU to take similar action against illegal US subsidies to aircraft manufacturer Boeing on US $ 4 billion worth of US exports to the EU.
Since during the presidency of Donald Trump, the United States was not ready to agree to a settlement of the conflict, including the immediate abolition of tariffs on European goods, on November 9, 2020, the EU decided to introduce its countermeasures. On December 31, 2020, the US changed the base period for calculating its sanctions, thereby significantly increasing the range of EU goods that are subject to tariffs.