Boeing-Airbus Deal Announced; Tariffs Suspended for Five Years
The U.S. and European Union are ending the longest trade dispute in the history of the World Trade Organization, and are moving from litigation to cooperation, the European Commission said in a news release. The White House said the tariffs are suspended for five years, which is a "fresh start," but allows the U.S. "to reapply tariffs if we’re no longer competing on a level playing field." Should the EU "cross a red line and U.S. producers are not able to compete fairly and on a level playing field, the United States retains the flexibility to reactivate the tariffs that are being suspended," said U.S. Trade Representative Katherine Tai during a call with reporters.
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European Commission President Ursula von der Leyen said in a press conference June 15 that a working group will look at state support on a case by case basis to see if the level playing field is maintained. The White House said the working group will meet at least yearly. The U.S. summary also said that the EU and U.S. will cooperate on countering investments in either area by non-market actors, since that can lead to the appropriation of technology, and they will also cooperate to counter investments in China that are "influenced by non-market forces."