Politics US, UK suspend retaliatory tariffs for four months

17:11  04 march  2021
17:11  04 march  2021 Source:   thehill.com

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a group of people standing around a plane: US, UK suspend retaliatory tariffs for four months © Getty Images US, UK suspend retaliatory tariffs for four months

The U.S. and U.K. have agreed to suspend some retaliatory tariffs regarding a long-standing Boeing and Airbus dispute for four months, effective Thursday.

"This will allow time to focus on negotiating a balanced settlement to the disputes, and begin seriously addressing the challenges posed by new entrants to the civil aviation market from non-market economies, such as China," the nations said in a joint statement.

The move is among the first major actions the Biden administration has taken to ease the aggressive trade wars President Trump pursued in office.

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It will lift tariffs on a variety of foods and spirits, including Scotch whiskey, imposed as punishment by the countries over subsidies to their major aerospace manufacturers.

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The tariffs suspension will not include the European Union, which the U.K. left in January, and tariffs on U.S. whiskey related to a separate trade dispute will remain in place.

"While we welcome the U.S. decision to suspend the retaliatory tariffs on UK distilled spirits for four months, we are greatly disappointed that the UK's debilitating tariff on American Whiskey remains in place," the Distilled Spirits Council of the United States said in a statement.

"American Whiskey exports to the UK, our fourth largest market, have declined by 53 percent, from $150 to $71 since the imposition of tariffs," the group added.

Katherine Tai, President Biden's pick for U.S. trade representative, said in confirmation hearings that she would seek negotiated solutions to the trade disputes that have resulted in significant tariffs.

The Senate Finance Committee unanimously approved Tai's nomination on Wednesday. She is expected to be confirmed next week.

U.S., EU Agree to Suspend Tariffs in Boeing-Airbus Dispute .
The European Union and the U.S. agreed to suspend tariffs on billions of dollars of each other’s products, easing a 17-year transatlantic dispute over illegal aid to the world’s biggest aircraft makers. President Joe Biden and European Commission President Ursula von der Leyen agreed to the move on a call Friday, the commission said in a statement.“This suspension will help restore confidence and trust, and therefore give us the space to come to a comprehensive and long-lasting negotiated solution,” European Commission Executive Vice-President and Trade Commissioner Valdis Dombrovskis said in a separate statement.

usr: 1
This is interesting!