United States and Europe End Trade War in Aviation
- Commercial competition between the Airbus and Boieng companies has led a country to establish tariffs on the export of products since 2004. On 15 June, they agreed to abolish these tariffs.
The tariffs caused by the dispute between the Airbus and the Boeing will be suspended for five years from 11 July this year. Tariffs affect both aviation products and the export of other non-aeronautical products (wine, oil, cheese…). In the bilateral agreement concluded on 15 June in Brussels, the United States and Europe have agreed to repeal the joint fees.
USA, Joe Biden; the President of the European Council, Charles Michel, and the President of the European Commission, Ursula von der Leyen, adopted the measures this Tuesday. Tariffs were suspended for four months in March, and an agreement has now been reached until 2026, but it is expected to be a decision that lasts forever. The tariffs imposed by Europe and the United States on the products of both parties amount to USD 11.5 billion, so this is a trade agreement valid for both parties.
Against World Trade Organization legislation, Airbus (Europe) first and Boieng (USA). In order to avoid the unfair advantage that these loans and aid give to civil aviation companies, one country has applied tariffs to another in aeronautical products and others. Trump hardened them during the legislature.
A hypothetical strategy to deal with China
But with Joe Biden’s arrival in the country’s presidency, America’s relationship with Europe is very different. Not only to cooperate, but also to curb the growth of other international actors: the summit and the U.S. trade delegate. USA, Katherine Tai, they have referred to China's leading role on the international scene. This alliance between Europe and the United States can be understood as part of a process to cope with the force of Beijing.
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