The EU and US have agreed to suspend all retaliatory tariffs on EU and US exports imposed in the Airbus and Boeing disputes for a four-month period.
The move was announced by both sides this evening (Friday, March 5) and will see hefty tariffs dropped from Irish dairy and pork goods destined for the US.
Irish products which had been subject to “additional import duties of 25% ad valorem” included: single-malt Irish whiskey; liqueurs; cheese; pork; yogurt; butter; dairy spreads; fats and oils derived from milk; and a variety of seafood.
In a statement this evening, the European Commission said that the suspension “allows both sides to focus on resolving this long-running dispute”.
It provides an important boost to EU exporters, since the U.S. had been authorised to raise tariffs on $7.5 billion of EU exports to the U.S. Similarly, EU tariffs will be suspended on some $4 billion worth of U.S. exports into the EU.
Commenting, European Commission Executive Vice-President and Trade Commissioner Valdis Dombrovskis said: “This is a significant step forward.
“It marks a reset in our relationship with our biggest and economically most important partner. Removing these tariffs is a win-win for both sides, at a time when the pandemic is hurting our workers and our economies.
“This suspension will help restore confidence and trust, and therefore give us the space to come to a comprehensive and long-lasting negotiated solution.
“A positive EU-US trade relationship is important not only to the two sides but to global trade at large.”
The dispute dates back to a World Trade Organisation (WTO) matter in relation to airplane manufacturers.
Background
In 2018, the Appellate Body found that the EU and its Member States had not fully complied with the previous WTO rulings with regard to EU subsidies to aircraft maker Airbus.
In March 2019, the Appellate Body confirmed that the U.S. had not taken appropriate action to comply with WTO rules on subsidies to aircraft maker Boeing.
In October 2020, the WTO authorised the EU to take similar countermeasures on $4 billion of U.S. exports to the EU against illegal U.S. subsidies to aircraft maker Boeing.