Today, the US and EU agreed on a five-year suspension of all retaliatory tariffs stemming from WTO disputes over government subsidies to aircraft manufacturers Airbus and Boeing. The goal is that in the next five years both sides reach a negotiated and permanent solution while easing the burden on the sectors on both sides of the Atlantic, which are being harmed by the retaliatory tariffs.
For Copa and Cogeca this move is of particular importance for the EU and US farming sectors, especially when our economies are starting to recover from the impacts of the COVID-19 pandemic. European farmers and agri-cooperatives encourage both partners to use this period to find a permanent solution while avoiding causing agriculture to pay a high-price for a conflict they are not involved in.
Commenting on the outcome of the summit Pekka Pesonen, Secretary-General of Copa-Cogeca said, "Today we feel the wind of change in EU-US trade relations and this is good news for the farming community. Still, the Airbus-Boeing debacle is not the only trade friction between both partners. There is a risk for a similar development in the framework of the digital tax. I also cannot forget that Spanish black olive producers still have to face a 35% import tax as a result of a decision by the US Administration in 2018. We hope that what happened today will be a stepping stone towards strengthening transatlantic cooperation and the international rules-based trading framework."
The EU and US have a common interest to work together, in an increasingly competitive world trade environment, starting with the reform of the WTO. Copa and Cogeca welcome possible new ideas on international trade disciplines, such as the Carbon Border Adjustment Mechanism and a better functioning dispute-settlement body.
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