U.S. and EU agree to freeze duties

U.S. and EU agree to freeze duties

Restrictive measures were imposed as part of the Boeing and Airbus dispute

The United States and European Union announced the suspension of reciprocal duties imposed in connection with the dispute between aircraft manufacturers Boeing and Airbus.

Recall that this dispute lasts for 16 years. Earlier the USA accused Airbus of hidden subsidies from EU and increased tariffs on the European import for $7.5 billion annually. The EU also imposed duties on a number of American goods.

The duties will be frozen for four months and will cover both a $7.5 billion tax on imports from the EU to the U.S. and $4 billion in duties imposed on U.S. exports to the EU.

In a joint statement, Brussels and Washington stressed that the four-month suspension would cover all duties that arose from lengthy World Trade Organization litigation over subsidies for Airbus and Boeing.

The statement stressed that the measure would allow the parties to focus their efforts on resolving the dispute. It will also allow the parties to focus on eliminating unfair competition from non-market economies, particularly China.

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The decision to freeze duties came after a telephone conversation between U.S. President Joe Biden and European Commission head Ursula von der Leyen.