Conflict between Airbus and Boeing: European Union and United States suspend punitive tariffs for five years

Conflict between Airbus and Boeing: European Union and United States suspend punitive tariffs for five years

A truce had been decided in March and applied until July 11. Its extension is the new one sign of a desire for appeasement between the two blocs, after the Trump years.

A Boeing 777-300ER plane arrives on the tarmac at Roissy-Charles de Gaulle airport on June 3, 2021. (GEOFFROY VAN DER HASSELT / AFP)

It is a relief for both camps. The President of the European Commission, Ursula von der Leyen, on Tuesday (June 15th) confirmed an agreement between the EU and the United States to resolve their long-standing dispute over illegal subsidies granted to aircraft manufacturers Airbus and Boeing. “We jointly decided to resolve this dispute. Today, we kept our promise ”,she said, while US President Joe Biden is visiting Brussels.

A news unanimously welcomed

The two parties have agreed to suspend for five years the punitive customs duties they are inflicting on each other in the context of this dispute. A truce had been decided in March and applied until July 11. Its extension is the new one sign of a desire for appeasement between the two blocs, after the Trump years. In 2019,Donald Trump had obtained, in retaliation, customs surcharges of 25% on European products including wine. The EU responded by imposing tariffs on $ 4 billion in US exports.

This is “Excellent news for French and European companies”, reacted in the wake of the French Minister of Foreign Trade, Franck Riester. US President Joe Biden also welcomed this measure, assuring that it would allow the two partners to counter China’s unfair practices in aeronautics. The management of Airbus and Boeing welcomed the news in the afternoon and pledged to respect this agreement, which created according to the European aircraft manufacturer“The conditions for fair competition”.