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US and EU end historic trade dispute over aid to Boeing and Airbus

2021-06-18T02:47:23.166Z

The dispute over illegal aid to the aeronautical giants dates back 17 years and has marked commercial tensions. Both parties have promised to lift the millionaire tariffs that were applied for this discord for five years.



The European Union (EU) and the United States have ended the trade dispute between aircraft manufacturers Boeing and Airbus with an agreement that extends the suspension of tariffs for a period of five years, the US Trade representative announced on Tuesday. , Katherine Tai.



Tai said that the agreement plans to extend the suspension of mutual tariffs for five years, starting on July 11.

"The announcement solves an irritating stagnant problem. Instead of fighting one of our closest allies, we finally unite against a common threat," he added.

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Even so, the US official indicated that her country will maintain the suspension

"as long as the EU's support for Airbus is consistent with the terms of the agreement"

, that is, that it does not cross any "red lines and the US manufacturers . can compete fairly. "



Tai explained that both parties have agreed, within the framework of this pact, to be clear about what is "acceptable support to large civil aeronautical manufacturers" and to enter into a cooperative process to address that support.

The President of the European Council, Charles Michel, right, and the President of the United States, Joe Biden, speak to the media after arriving at the summit between the European Union and the United States at the European Council building in Brussels, Tuesday, June 15, 2021.AP Photo / Francisco Seco

Another point of the agreement between the US and the EU is "to overcome the differences with China."

Both parties have pledged to collaborate in a "meaningful way to confront investments in the aeronautical sector by non-market players in our economies," Tai explained.

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The dispute between Airbus and Boeing is one of the longest in the history of the World Trade Organization (WTO). It began in 2004 when the complaint process for the subsidies granted by both parties to these two large companies began.

The WTO declared such aid illegal and in 2019 allowed former US President Donald Trump to impose retaliation on EU products worth $ 7.5 billion.

A year later, the EU responded with tariffs on US exports valued at $ 4 billion.



Last March, the US and the EU agreed to suspend those tariffs for four months, until July 11, to allow time to negotiate a solution.

[Biden urges G-7 leaders to compete with China]



The US announcement came shortly before President Joe Biden, who is in Brussels, participates in a summit between his country and the EU, before leaving for Geneva to meet his Russian counterpart Vladimir Putin on Wednesday.

With information from AP and EFE.

Source: telemundo

All news articles on 2021-06-18

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