Just days after policymakers announced a five-year tariff suspension between the United States and the European Union – ending a decades-long trade dispute – officials announced a similar deal was underway conclusion between the United States and the United Kingdom.
The deal concerns an ongoing civil aircraft dispute involving US-based Boeing and EU-based Airbus. According to a statement from the US Trade Representative, as part of an agreement between the United States and the United Kingdom is similar to that reached earlier this week with the EU
The deal comes as US President Joe Biden makes his first visit to the EU as president. According to the USTR, the new agreements are part of the Biden administration’s efforts to create a “strong relationship between our two countries.”
âThe United States and the United Kingdom will not impose tariffs for five years, and we will work together to counter China’s non-market practices in this sector,â the USTR said. “This understanding represents a model the United States can rely on to work with our allies on common interests, and it includes collaboration on inbound and outbound investment, technology transfer, and know-how.”
The US commercial fishing trade group National Fisheries Institute hailed the news.
“The decision to suspend parallel tariffs on [affected] US and UK products for five years is an important decision, âsaid NFI President John Connelly. âThis helps create a more cohesive climate for seafood businesses. Stability and predictability, especially in export markets, are valued and contribute to market growth. “
The two sides agreed on general principles, including not to impose tariffs related to the dispute for the next five years. In addition, a working group will be established to analyze trade disagreements, and the two countries also agreed to clear statements on acceptable support for producers of large civil aircraft.
A key tenet of the General Principles is partnership against “the threat we face from China’s ambitions to build a sector on non-market practices,” according to the USTR.
The UK had offered additional tariffs on American lobsters last month. The tariffs were a response to former US President Donald Trump’s introduction of 25% and 10% tariffs on steel and aluminum imports, citing national security concerns.
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