The four-month tariff suspension is intended to ease the burden on industry and to take a bold, joint step towards resolving the longest running disputes at the World Trade Organization.
“The United Kingdom ceased applying retaliatory tariffs in the Boeing dispute from January 1, 2021 to de-escalate the issue and create space for a negotiated settlement to the Airbus and Boeing disputes,” the joint statement says.
“The United States will now suspend retaliatory tariffs in the Airbus dispute from March 4, 2021, for four months. This will allow time to focus on negotiating a balanced settlement to the disputes, and begin seriously addressing the challenges posed by new entrants to the civil aviation market from non-market economies, such as China.
Robert M. Tobiassen, president, National Association of Beverage Importers, said he action shows the Biden/Harris Administration is taking real action on the campaign promise to rebuild trade relationships with our traditional allies. Actions are always better than words.” But, he added, ” the UK and the U.S. left in place their steel and aluminum tariffs. The EU has offered a mutual suspension of the Boeing/Airbus retaliatory tariffs along with a suspension of the steel and aluminum. The silence of USTR on this mutual suspension offer is deafening when heard with the with announcement the U.S. and UK suspension of the Airbus/Boeing retaliatory tariffs.”
The Distilled Spirits Council of the U.S. called the announcement “a fresh start to trade relations under the Biden administration and is a hopeful sign that a resolution to the tariffs on U.S. & UK spirits may be in reach.”
But it’s not nervana, DISCUS warned, saying it was “greatly disappointed that the UK’s debilitating tariff on American Whiskey remains in place. American Whiskey exports to the UK, our fourth largest market, have declined by 53%, from $150 to $71 million since the imposition of tariffs (2018-2020).
“We urge the U.S. and UK to build on this positive momentum by negotiating an agreement to simultaneously eliminate retaliatory tariffs on all distilled spirits, which will benefit hospitality businesses on both sides of the Atlantic that are struggling to recover and rebuild from the global pandemic,” DISCUS continued.