U.S., E.U., and the U.K. setting aside trade remedy duties in Boeing / Airbus dispute

The escalating game of tit-for-tat over the issue of subsidies to Boeing and, Airbus which was adjudicated before the World Trade Organization, has seen a significant decrease in temperature than the U.S.’s steps. Most recently, with both the European Union and the United Kingdom last week.

The United States Trade Representative first announced a four-month suspension of the United Kingdom’s duties on March 4th. Having left the European Union, the U.S. took separate action to include products of U.K. origin, such as liquor. The announcement, taken while USTR nominee Katherine Tai awaits Senate confirmation following being unanimously reported out of committee sets a four-month suspension on a collection of those duties, including exports on well-known U.S. products as a reciprocal step.

On Friday, March 5th, the agency followed up with a similar statement focused on the European Union and indicated the same four-month suspension on both aircraft and non-aircraft products. Instead of continuing to escalate before a body still without appellate function, both sides sought an off-ramp.

Both decisions cited the need to resume collaboration with allies to find solutions to “the distortive trade practices of and challenges posed by new entrants to the sector from non-market economies, such as China.”

For U.S. importers and exporters, the duties will no longer be applied upon entry into the respective countries as soon as the internal procedures are completed.

Here at Sobel, we have remained attentive to the challenges the additional duties have caused our clients importing from these close trade partners across the Atlantic as the pandemic has raged on both sides of the ocean. The opportunity for our manufacturers and theirs to reduce prices once more because punitive duties have been removed will create increased sales and demand. Sobel stands ready to provide freight forwarder and customs clearance assistance on these products and all exports unaffected by these actions.