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Summary
- US Trade representative Katherine Tai said the deal could serve as a model to counter common challenges from China and other “non-market” economies.
- The US-UK tariff war had hit businesses hard on both sides of the Atlantic. They had announced a temporary tariff ceasefire to advance their negotiations.
- US Trade representative Katherine Tai said the deal could serve as a model to counter common challenges from China and other “non-market” economies.
The US and the UK on Thursday agreed to resolve their long-standing dispute over subsidies to aircraft-makers Airbus and Boeing, paving the way for rolling back their tit-for-tat tariffs.
Both sides also agreed to tackle Chinese subsidies to the aerospace industry that hurt fair trade. They underscored the need to jointly counter China’s “non-market” funding to the aerospace industry.
The US-UK tariff war had hit businesses hard on both sides of the Atlantic. To end their aviation tariff row, both had agreed to a short-term tariff ceasefire to advance their talks. As per the latest deal, tariffs will remain suspended for a further five years while both sides provide funding to the industry on market terms.
Companies like Scotch Whisky had been among the worst affected in the trade war.
Praising the breakthrough in negotiations, British Trade Minister Liz Truss said the deal would help create British jobs, and the UK companies will no longer face retaliatory tariffs.
Scotch Whisky said it lost around US$836.64 million due to tariff wrangles.
US Trade representative Katherine Tai said the deal could serve as a model to counter common challenges from China and other “non-market” economies.
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Source: Pixabay.
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EU-US Deal
The US and the European Union (EU) also had signed almost an identical trade deal a day before, concerning a 17-year-old dispute over subsidies to Boeing and Airbus.
The UK companies make the wings for Airbus commercial jets. Airbus had threatened to move factories abroad in the absence of a settlement. It has 14,000 employees in Britain.
The dispute pertains to government loans to companies at subsidised rates. Both sides now agree to provide loans on market terms.
Meanwhile, the UK is also keen on a free trade agreement with the US as it forges new ties around the world after its exit from the EU in 2020.
