Cheer over Boeing, Airbus deal belies cracks in EU, US trade relationship | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Food
    • Habitat
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
The Business Standard

Tuesday
December 05, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Food
    • Habitat
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
TUESDAY, DECEMBER 05, 2023
Cheer over Boeing, Airbus deal belies cracks in EU, US trade relationship

World+Biz

Reuters
16 June, 2021, 02:05 pm
Last modified: 16 June, 2021, 02:07 pm

Related News

  • Man stabs four to death in New York, police shoot him dead
  • EU wants Bangladesh to act on labour rights as pledged
  • EU representatives meet CEC
  • EU technical team to monitor election process in Dhaka
  • Bangladesh could be target of US labour policy, warns Washington mission

Cheer over Boeing, Airbus deal belies cracks in EU, US trade relationship

The fact that the two sides failed to hammer out a permanent solution to the aircraft subsidy dispute, after months of optimistic noises from senior officials, showed how deep their differences run

Reuters
16 June, 2021, 02:05 pm
Last modified: 16 June, 2021, 02:07 pm
US and European Union flags are pictured during the visit of Vice President Mike Pence to the European Commission headquarters in Brussels, Belgium February 20, 2017. REUTERS/Francois Lenoir
US and European Union flags are pictured during the visit of Vice President Mike Pence to the European Commission headquarters in Brussels, Belgium February 20, 2017. REUTERS/Francois Lenoir

A deal for a five-year ceasefire in a US and EU dispute over aircraft subsidies on Tuesday reflected progress, but the underlying trade relationship remains fragile with many unresolved disagreements, diplomats and trade experts said.

The two economic powers agreed to set aside tariffs on $11.5 billion in US and EU goods hit during the subsidy battle over Boeing Co (BA.N) and Airbus SE (AIR.PA) aircraft, to focus on fighting China's clear ambition to build and sell its own commercial aircraft.

But the United States warned it could re-impose tariffs "if we're no longer competing on a level playing field." That warning relates to the big outstanding differences over taxation of big American tech firms; steel and aluminum tariffs and reforms of the World Trade Organization, experts said.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

The fact that the two sides failed to hammer out a permanent solution to the aircraft subsidy dispute, after months of optimistic noises from senior officials, showed how deep their differences run.

"It's not as good as what it could be or should be," said one diplomatic source of the five-year hiatus. "They've essentially kicked this into the long grass."

Tensions are also fraught because the Biden administration has moved slowly to review tariffs and other policies introduced by former President Donald Trump. Some European diplomats are frustrated. Many key roles at the US Trade Representative's office remain unfilled, complicating negotiations.

STEEL AND ALUMINUM ROW

At the summit, Washington and Brussels also agreed to discuss US tariffs on EU steel and aluminum imports before the end of the year and address excess capacity in the overall market, notably from China. But prospects for an agreement on rescinding the tariffs looked slim.

US steel industry groups and unions are urging the Biden administration to keep in place the 25% steel and 10% aluminum tariffs imposed three years ago under Trump.

The US tariffs affect 6.4 billion euros of EU metal exports. The European Commission, which wants them removed is challenging the US tariffs at the WTO.

One senior US trade official told reporters on Tuesday that the issue would be "difficult" to resolve.

A EU official said Washington refused point blank to agree to lift the steel and aluminum tariffs by Dec. 1, but said US officials acknowledged that the issue was "something that creates tensions and that needs to be addressed."

In a conciliatory move, the European Commission, which oversees EU trade policy, last month suspended a June 1 doubling of retaliatory tariffs on Harley-Davidson Inc (HOG.N) motorbikes, US whiskey and motorboats for six months, and refrained from taxing more US products.

APPLE, FACEBOOK, GOOGLE

The United States is pushing for an agreement on a global minimum corporate tax, which could help move along multilateral negotiations over digital taxation.

But Washington told France, Italy and others that they face other tariffs if they implement domestic digital services taxes, which Washington says unfairly target US companies, if no international consensus is reached.

US officials have also expressed deep concern about draft rules announced by the EU that would require US tech companies like Alphabet Inc's (GOOGL.O) Google, Apple Inc (AAPL.O) and Facebook Inc (FB.O) to provide far more information, including about takeovers, according to an administration source.

WTO PATENT WAIVERS AND REFORMS

EU officials are still smarting after Washington's abrupt decision to support a temporary waiver of intellectual property rights at the World Trade Organization to help speed production of COVID-19 vaccines.

They said Washington has failed to engage fully on reviving the WTO Appellate Body, its dispute settlement mechanism, after it was essentially dismantled by the former Trump administration.

"We are not really yet seeing a full engagement on the issue," said one EU official, adding that the Biden administration was still reflecting "on what to do."

US / EU / boeing / Airbus

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Record 27% nominations scrapped with  more bigshots rejected
    Record 27% nominations scrapped with  more bigshots rejected
  • Smoke rises from chimneys at a factory in the port of Dunkirk, France January 19, 2023. REUTERS/Yves Herman/File photo
    Global CO2 emissions from fossil fuels to hit record high in 2023: report
  • After AL, now BNP announces rally in Dhaka on 10 Dec
    After AL, now BNP announces rally in Dhaka on 10 Dec

MOST VIEWED

  • LPG cylinders. Photo: Courtesy
    12kg LPG cylinder price up Tk23
  • For the first time, Bangladesh seeks foreign loans to support Rohingyas
    For the first time, Bangladesh seeks foreign loans to support Rohingyas
  • Photo: Collected
    Indonesia volcano erupts, spews ash 3 km into sky
  • External trade through Islamic banks in decline
    External trade through Islamic banks in decline
  • Halal products export receives boost with new policy, but more is required
    Halal products export receives boost with new policy, but more is required
  • Exports up 27% in Nov as peak festival sales begin in West
    Exports up 27% in Nov as peak festival sales begin in West

Related News

  • Man stabs four to death in New York, police shoot him dead
  • EU wants Bangladesh to act on labour rights as pledged
  • EU representatives meet CEC
  • EU technical team to monitor election process in Dhaka
  • Bangladesh could be target of US labour policy, warns Washington mission

Features

Masud Ahmad has written one of the finest Bangla novels in recent times, titled ‘Kanchanfuler Kobi,’ centred around the life and works of eminent poet Jibanananda Das. Photo: Rajib Dhar

How little-known Masud Ahmad became the 'Shera Bangali'

22h | Panorama
Designed for utility, the D90 is a giant in comparison to other MG models and misses out on design elements which gives the other models their sporty stance. Photo: Akif Hamid

Maxus D90: Spacious, capable and practical

1d | Wheels
Maria Callas: Remembering the soprano diva on her century

Maria Callas: Remembering the soprano diva on her century

15h | Features
Photo: Touseful Islam

Last sip of coffee with cats: Bidding adieu to Capawcino

1d | Features

More Videos from TBS

Despite the incentives, remittances are not speeding up

Despite the incentives, remittances are not speeding up

10h | TBS Economy
Terrible Torture in Israeli Prisons: Testimony of Prisoners

Terrible Torture in Israeli Prisons: Testimony of Prisoners

8h | TBS World
Lighterage ship trips halved

Lighterage ship trips halved

10h | TBS Economy
3 commercial ships hit by missiles in Houthi attack in Red Sea

3 commercial ships hit by missiles in Houthi attack in Red Sea

11h | TBS World
EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]