• Linkdin

UK, US strike deal on Airbus-Boeing tariff dispute

18 Jun '21
2 min read
Pic: Shutterstock
Pic: Shutterstock

The United Kingdom yesterday struck a deal with the United States on the Airbus-Boeing dispute. After talks between UK international trade secretary Liz Truss and US trade representative Katherine Tai in London, both sides agreed to suspend retaliatory tariffs for five years and for closer cooperation on tackling unfair trade practices by non-market economies.

The 17-year-long dispute, the longest-running in the history of the World Trade Organisation (WTO), has seen damaging retaliatory tariffs levied on products on both sides of the Atlantic due to disagreements over support for large civil aircraft.

The disagreement has hit industries such as cashmere, machinery and single-malt Scotch whisky that employ tens of thousands across the United Kingdom. The Scotch Whisky Association estimates the tariffs have cost the sector hundreds of millions of pounds in lost revenue.

The United Kingdom, which was involved as a member of the EU, took the decision to deescalate the dispute by unilaterally suspending retaliatory tariffs on the US at the start of this year, which encouraged the United States to agree to a four-month suspension of tariffs while both sides negotiated a longer-term arrangement, according to a UK government press release.

Both sides will now work together to put the agreement into practice and strengthen cooperation in the large civil aircraft sector, it said.

A working group on large civil aircraft led by the respective ministers responsible for trade will also be established. Research and development funding for large civil aircraft will also be provided.

“This deal will support jobs across the country and is fantastic news for major employers like Scotch whisky and sectors like aerospace. We took the decision to de-escalate the dispute at the start of the year when we became a sovereign trading nation, which was crucial to breaking the deadlock and bringing the US to the table,” Truss said.

Fibre2Fashion News Desk (DS)

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search