Published 08:42 IST, March 5th 2021
US suspends tariffs on UK goods to resolve aircraft dispute
The United States (US) has agreed to suspend millions of dollars’ worth of tariffs on exports from the United Kingdom, a move that aims to resolve conflict.
The United States have agreed to suspend millions of dollars’ worth of tariffs on exports from the United Kingdom, a move that reflects on the Biden administration’s resolve to end a longstanding transatlantic dispute over aerospace subsidies. In a joint statement released on March 4, the two countries clarified that the US government would nix tariffs on a range of European goods including the famed scotch whiskey for a period of four months. The latest move, they said that would benefit a wide range of businesses on both sides and would also give time for negotiation.
“The United Kingdom and the United States are undertaking a four-month tariff suspension to ease the burden on industry and take a bold, joint step towards resolving the longest-running disputes at the World Trade Organization,” the statment read. "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," it added.
In a trade war that has stretched since the past 16 years, both America and the EU have been squabbling over aircraft subsidies. In 2019, the Trump administration slapped hefty tariffs on European goods worth $7.5 billion for its support to Airbus. The UK, along with other stakeholders in Airbus-Spain, France and Germany- was targeted with additional tariffs. In response, the European bloc levied additional customs duties on American Products.
Boris Johnson welcomes the move
British Prime Minister Boris Johnson said the trade truce would bolster businesses that have been crushed equally by American sanctions and the pandemic. "From Scotch whisky distillers to Stilton-makers, the US decision to suspend tariffs on some UK exports today will benefit businesses right across the UK," he tweeted. Since, its exit from the EU, London has been stepping up efforts to reach a wide range of trade deal with Washington.
Updated 08:42 IST, March 5th 2021