EDA and other EU associations urge EU and US to end aircraft trade disputes

Following the recent United States Trade Representative (USTR) announcement and in view of the forthcoming World Trade Organisation’s report on the Boeing case, the European Dairy Association (together with 12 other EU associations) is calling on the EU and US to de-escalate the ongoing aircraft disputes and remove tariffs on targeted sectors not directly related to the aircraft case as a matter of urgency.

“We do not believe that using our sectors as leverage in disputes that are not connected to us is helping with the broader, unrelated issues”, said the coalition. “While we appreciate that trade tensions between US and EU are complex, with serious issues on both sides, punitive tariffs cause irreparable harm to companies of all sizes and weaken their entire supply chains, at a time when growth and job creation are most needed. They fuel a negative cycle, with a strong risk of further escalation, and generate no tangible benefits to the EU or the US”.

Affected sectors not party to the aircraft disputes have decided to speak with one voice in urging the European Commission and US Administration to put an end to the negative cycle and work on a negotiated solution without impacting the broader economy any further. This, they say, is critical at a time when undersigned sectors and their wider supply chains in both the EU and the US have already suffered significant economic damage as a result of the Covid-19 crisis and are trying their best to sustain what can only be described as a fragile economic recovery.

“We hope Airbus’ announcement from July 2020 and the legislation passed in Washington State in March 2020 regarding civil aviation subsidies will be seen by both sides as significant steps toward the elimination of tariffs and will encourage both the US & the EU to go back to the negotiating table”, concluded the coalition.

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