Airbus-Boeing dispute: London waives taxes in view of trade deal with Washington

The United Kingdom will drop tariffs imposed on American products in the context of the dispute between Airbus and Boeing, dissociating itself from the EU in this matter with the hope of obtaining a post-Brexit Washington trade agreement.

This decision, announced Wednesday, will apply from January 1, once the country has left the single European market and the customs union.

Read also: Airbus-Boeing dispute: Europe wants to negotiate

It should make it possible "

" said the Department of International Trade in a statement.

It is also a question of "

" around the aircraft manufacturers, specifies the ministry which reserves the right to impose again customs duties if necessary.

The European aircraft manufacturer Airbus and its American competitor Boeing, and through them the European Union and the United States, have been clashing since October 2004 before the WTO (World Trade Organization) over public aid paid to the two groups, considered illegal by both sides.

Punitive tariffs

Since 2019, the United States has imposed punitive tariffs on European imports such as wine, cheese and olive oil or Scotch whiskey, as well as 15% taxes on Airbus planes.

Washington had been authorized by the WTO, up to 7.5 billion dollars.

In retaliation, the EU has applied additional tariffs this year on $ 4 billion in imports from the United States.

On the other hand, the United Kingdom specifies in its press release Wednesday that it will maintain tariffs in response to those imposed by the United States on aluminum and steel, a file separate from that of aircraft manufacturers.

“

” said Liz Truss, Minister of International Trade.

The UK is relying heavily on reaching deals around the world to thrive after Brexit and once the transition period ends at the end of December.

The country had hoped to negotiate a deal with the United States as soon as possible, but it seems difficult for it to be able to intervene before the end of the year given the pandemic and the transition of power in the United States.

London has already announced a large agreement recently with Japan.

The country has also agreed to a provisional trade agreement with Canada which will reproduce from January 1 on a bilateral basis the agreement which the country benefited from as an EU member state.

But discussions on the post-Brexit relationship with the EU, by far its largest trading partner, are very uncertain, raising fears of a “

” three weeks before the end of the transition period.