Deal announced to halt parallel tariffs between US and UK
Just days after policymakers announced a five-year suspension of tariffs between the United States and European Union – winding down a decades-long trade conflict – officials announced a similar deal is being struck between the U.S. and United Kingdom.
The agreement is in regards to an ongoing civil aircraft dispute involving U.S.-based Boeing and E.U.-based Airbus. According to a release from the U.S. Trade Representative, the framework for a deal between the U.S. and U.K. is similar to that reached earlier this week with the E.U.
The deal comes as U.S. President Joe Biden makes his first visit to the E.U. as president. According to the USTR, the new deals are part of the Biden administration’s efforts to create a “stronge relationship between our two countries.”
“The U.S. and U.K. will not impose tariffs for five years, and we will work together to counter China’s non-market practices in this sector,” the USTR stated. “This understanding represents a model that the U.S. can build on for working with our allies on shared interests, and it includes collaboration on inward and outbound investment, tech transfer, and know-how.”
U.S. commercial fishing trade group National Fisheries Institute welcomed the news.
“The decision to halt parallel tariffs on [affected] U.S. and U.K. products for five years is an important move,” NFI President John Connelly said. “It helps produce a more consistent climate for seafood companies to operate in. Stability and predictability, especially in export markets, are prized and contribute to market growth.”
Both sides agreed to general principles, including not imposing tariffs related to the dispute for the next five years. In addition, a working group will be established to analyze trade disagreements, and the two countries also agreed to clear statements on acceptable support for large civil aircraft producers.
A key tenet of the general principles is a partnership against “the threat we face from China’s ambitions to build a sector upon non-market practices,” according to the USTR.
The U.K. had proposed additional tariffs on U.S. lobsters just last month. Those tariffs were a response to former U.S. President Donald Trump’s introduction of 25 percent and 10 percent tariffs on steel and aluminum imports, citing national security concerns.
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