US and EU Agree to Suspend Tariffs in Boeing-Airbus Dispute
The United States and European Union have agreed to a temporary suspension of tariffs in the long-running dispute over subsidies for aerospace companies Boeing and Airbus. The move is seen as a positive step towards resolving the trade conflict, which has been ongoing for over a decade.
Under the agreement, the US and EU will suspend tariffs on $11.5 billion worth of goods for a period of four months. The suspension will take effect retroactively from March 11th, 2021.
The dispute dates back to 2004, when the US filed a complaint with the World Trade Organization (WTO) over subsidies provided to Airbus by European governments. The EU responded with a similar complaint over US subsidies for Boeing.
The dispute has resulted in tariffs being imposed on a range of goods, from aircraft parts to cheese and wine. The suspension of tariffs is seen as a positive development, as it provides a window for negotiations to take place and a potential resolution to be reached.
In a joint statement, US Trade Representative Katherine Tai and EU Executive Vice President Valdis Dombrovskis said the agreement was a “significant breakthrough” and showed a “commitment to resolving longstanding disputes.”
The temporary suspension of tariffs is expected to provide relief for businesses on both sides of the Atlantic, particularly those in industries impacted by the tariffs. It is also seen as a positive signal for international trade relations, as the US and EU work towards resolving a major trade conflict.