Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

After EU, Britain and U.S. reach truce in aircraft trade dispute

Stock MarketsJun 17, 2021 15:46
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: An Airbus A350 jetliner flies over Boeing flags as it lands after a flying display during the 51st Paris Air Show at Le Bourget airport near Paris, June 15, 2015. REUTERS/Pascal Rossignol/File Photo

By Alistair Smout and Tim Hepher

LONDON (Reuters) -Britain and the United States agreed on Thursday to resolve a long-running trade dispute over aid for planemakers Airbus and Boeing (NYSE:BA) and focus on tackling Chinese subsidies, echoing a five-year tariff truce announced by Washington and Brussels.

Together, the matching deals draw a line under 17 years of battles at the World Trade Organization and establish a common front against "non-market" funding in a reference to China's nascent aerospace industry.

The dispute had triggered a months-long transatlantic tariff war hitting industries such as Scotch whisky until a temporary tariff ceasefire was called this year to ease negotiations.

Tariffs will be suspended for a further five years while governments also pledge to provide any funding on market terms, lifting a perennial source of transatlantic tensions.

"This will support jobs across the United Kingdom and is great news for Scotch whisky and other exports including aerospace who will no longer face punitive tariffs," British trade minister Liz Truss said on Twitter.

The Scotch Whisky Association said its members had lost 600 million pounds ($836.64 million) because of tariffs. In the United States, the Distilled Spirits Council said American whiskey was still being hurt by tariffs in a separate dispute on steel and aluminium.

The UK-U.S. aerospace deal came two days after the EU reached a truce with Washington over aircraft subsidies, and capped a week of summit diplomacy aimed at countering the rising influence of China.

United States Trade Representative Katherine Tai called it "a model we can build on to ensure fair competition and address common challenges from China and other non-market economies".

AIRBUS JOBS

The United States and Europe had been battling since 2004 over subsidies to Boeing and Airbus, in the largest ever corporate trade dispute.

Britain has since left the European Union and Thursday's almost identically worded agreement achieves many of the same results as the EU-U.S. deal.

Britain, whose ability to negotiate trade deals independently of the EU is central to its new "global Britain" stance, has a long history as one of four core nations involved in Airbus, a relationship that predated its EU membership, and its UK factories make the wings for Airbus commercial jets.

In December, Britain and the United States came close to a standalone aerospace deal that could have forced the hand of Brussels in its own talks with Washington, but drew back over concerns over UK jobs, Reuters reported..

An official familiar with the talks said it had not been possible at that time to reach a balanced deal.

Airbus, which has 14,000 staff in Britain, has repeatedly warned that it could shift work abroad, restricting Britain's ability to negotiate independently over aerospace.

The more limited truce agreed this week leaves a system of government loans for Airbus intact on paper, but commits Britain, France, Germany and Spain to issue any new loans for Airbus development on market terms still to be defined.

Both sides had won partial victories and claimed to have complied with thousands of pages of rulings, but this week's deals set aside years of legal bickering at the WTO, which ruled past Airbus loans were illegal while rapping support for Boeing.

Separately, Britain is keen to agree a free trade agreement with the United States, as it seeks new relationships around the world following its exit from the European Union in 2020.

($1 = 0.7172 pounds)

After EU, Britain and U.S. reach truce in aircraft trade dispute
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email