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The European Union and the United States are preparing to resolve a 17-year-old aircraft subsidy dispute and lift the threat of billions of dollars in punitive tariffs on their economies in order to promote transatlantic relations.
Diplomats and officials confirmed on Monday evening that the two-day intensive negotiations in Brussels had separated from the European Union and the Biden administration. On the cusp of confirming transactions Airbus and Boeing subsidy rules. This breakthrough is scheduled to be finalized at the first EU-US summit in Brussels by US President Joe Biden on Tuesday.
People close to the talks said that the governments of Airbus’s three EU home countries—Germany, France, and Spain—are negotiating an agreement that could be confirmed on Tuesday morning if there are no last-minute obstacles.
People familiar with the negotiations said that the agreement may break down and may take the form of a multi-year agreement on subsidy restrictions.
A breakthrough will lift the cloud of uncertainty that looms over the aviation industry and at the same time eliminate the threat that EU and US consumer products may be hit by punitive tariffs again due to the dispute.
These tariffs-for a wide range of products, from French wines to American spirits and sugar cane syrup-are time out Previously, the European Union and the United States agreed in March to lift it for four months and begin negotiations on a settlement.
$7.5 billion
Additional tariffs imposed by the U.S. on European goods in October 2019
The dispute between Airbus and Boeing is one of the longest-running battles in the history of the World Trade Organization-both sides acknowledged differences More and more unaffordable They seek to establish closer cooperation in response to the Chinese state capitalist model.
EU Trade Commissioner Valdis Dombrovskis held talks with U.S. Trade Representative Catherine Tay and Secretary of Commerce Gina Raimundo a few days before the summit, and the two sides worked hard to reach an agreement on this line.
Dai’s office declined to comment.
Companies on both sides of the Atlantic have long called for solutions.After the U.S. targets European exports, this matter has become more urgent Valued at $7.5 billion plus additional tariffs In October 2019, although the EU implemented additional Impose tariffs on US$4 billion worth of U.S. exports last year. Both sets of measures are in line with WTO rulings and are beneficial to both sides.
But over the years, both the United States and the European Union have been found to have failed to properly implement the WTO’s expert group ruling on providing illegal subsidies for its aircraft manufacturing champions.
Trade officials from the European Union and the United States emphasized the complexity of the dispute, and both sides disputed the other’s claims to comply with WTO decisions. The nature of subsidies on both sides of the Atlantic is also very different. EU officials cited the huge US defense contract as an example.
The end of the dispute between Airbus and Boeing will remove an important stimulus factor in the trade relationship, but other factors will still exist.
Brussels did not increase tariffs on U.S. goods last month. This is a gesture of goodwill amid differences. Tariffs in the Trump era Steel and aluminum in Europe.
The two economies have not completely concealed their differences Digital tax, This issue is now linked to broader international negotiations.
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