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US News EU and United States extend in Airbus Boeing dispute suspension of criminal duties

12:35  15 june  2021
12:35  15 june  2021 Source:   rp-online.de

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The U . S . and the European Union agreed to end their 17-year dispute over aircraft subsidies to Airbus SE and Boeing Co. that saw the allies impose tariffs on .5 billion of each other’s exports, EU officials said. The European Commission spent Monday night discussing the accord with member states In 2019, the World Trade Organization authorized the U . S . to level tariffs against .5 billion of EU exports annually over government support for Airbus , while the EU won permission to hit back with levies on billion of U . S . goods. The levies were suspended by both sides in March as negotiators

The EU and US have agreed to suspend punitive tariffs related to their longstanding feud over aircraft subsidies, in the first breakthrough in trade relations since President Joe Biden took office. The two sides reached a deal after intensive talks, according to people familiar with the discussions, in a sign that the 16-year-old transatlantic trade battle over state aid to Airbus and Boeing could be coming to an end. The accord, announced by Ursula von der Leyen, European Commission president, means both sides will suspend tariffs linked to the dispute for four months.

Brussels. In the dispute over subsidies for the aircraft Bauer Airbus and Boering, the EU and the US continued to give up penalty duties. Originally a deadline was until the 11th of July.

 Eine Boeing 747 startet vom Flughafen Frankfurt aus in den Abendhimmel. © Boris Roessler A Boeing 747 starts from Frankfurt Airport in the evening sky.

The EU and the United States are given more time in the dispute over subsidies for their aircraft builder Airbus and Boeing. As the news agency AFP experienced on Tuesday from EU circles, the peace period agreed in March will be extended beyond the 11th of July. US President Joe Biden meets Ursula by the Leyen and Council President Charles Michel in Brussels at noon and Council President Charles Michel in Brussels, in order to talk about trade issues.

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European Commission chief Ursula von der Leyen said on Friday that she and United States President Joe Biden agreed to suspend all tariffs imposed in the context of the Airbus - Boeing disputes , both on aircraft and non-aircraft products, for at least four months [File: Francisco Seco/AP Photo]. Von der Leyen said she invited Biden to a global health summit in Rome on May 21 to streamline the fight against COVID-19, the common enemy that has killed over a million people in the EU and US combined. She hopes the commonality would extend to foreign policy issues as well

In a sign of goodwill to rebuild trans-Atlantic relations, the European Union and the United States have decided to suspend tariffs used in the longstanding Airbus - Boeing dispute for a four-month period, EU Commission President Ursula von der Leyen said on Friday, March 5, 2021 after a remote On Friday though, it was trade that mattered and the suspension will give a four-month window to address the more fundamental issues. In the aircraft dispute , the U . S . was allowed to impose tariffs on .5 billion of EU exports to the U . S and as a result of the deal, EU tariffs will be suspended on billion of U . S

The EU and the US have been in line with their aircraft manufacturers in the conflict for 17 years. They threw each other before subsidizing Airbus and Boeing inadmissible. At the beginning of March, both sides to Biden had explained a kind of ceasefire for four months. By July 11, they waived to prove themselves with other criminal tariffs to negotiate a solution to the conflict.

"That's a good deal, it's a long truce," an EU representative told the now agreed extension. How long these will fail, remained unclear. "It is an agreement to achieve a long-term solution," it said from another source. During this time, sanctions would be exposed to WTO within the World Trade Organization.

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The European Union and the United States claim that each other's airplane manufacturer is unfairly subsidized. It was the US which first filed a case with the World Trade Organization (WTO) in 2006 claiming that Airbus , which is jointly owned by Germany, France, Spain and Britain's BAE Systems, had received billion (€19.4 billion) in illegal subsidies. The EU retaliated with a counter case, alleging that Boeing had received billion in "trade-distorting" subsidies in the US mainly for its research and development projects. What has the WTO found?

The United States and European Union on Friday agreed to suspend for four months the tariffs imposed in the long-running dispute over subsidies to Airbus and Boeing . Why it matters: The agreement is a major step in resolving the 17-year dispute , which has resulted in tariffs on billions of dollars "Similarly, EU tariffs will be suspended on some billion worth of U . S . exports into the EU ." What they're saying: "We both committed to focus on resolving our aircraft disputes , based on the work our respective trade representatives," European Commission President Ursula von der Leyen said in

EU Commission President of Leyen showed "very confident that today we will find an agreement in the Airbus Boeing question in our conversation with our American friends". After all, "the longest trade conflict in the WTO story," she said. It lies in the mutual interest to solve it. Specifically, she did not express itself for the extension of the suspension of the penalty duties.

During the tenure of Biden's predecessor Donald Trump, Washington got the permission to impose criminal duties in the amount of $ 7.5 billion (6.2 billion euros) against European goods and services, including 25 percent on wines and spirits and 15 Percent on Airbus aircraft. One year later, Brussels also received the approval of the WTO, in turn, US imports with penalty duties amounting to the scope of four billion dollars.

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