The United States and the United Kingdom have suspended additional import duties on each other’s products for at least four months. Meanwhile, the British government said a final settlement is being negotiated. London unilaterally eliminated surcharges on some US products in January to ease trade tensions.
This relates to a 17-year dispute between the United States and the European Union over state aid to the aviation sector. Washington accused European countries of secretly supporting Airbus with soft loans. For its part, the European Union believes Boeing was helped by beneficial tax rules. In response to the dispute, additional trade fees were imposed on both sides. These again got the approval of the World Trade Organization (WTO).
Additional fees were also imposed on British products, but the country is no longer a member of the European Union. Now that Brexit is a reality, London can pursue its own trade policy.
It was announced last month that the government of US President Joe Biden would review its import duty policy on products from the European Union. Several European Union member states want to strengthen ties with the United States with Biden’s arrival. This should also put an end to the trouble posed by former President Donald Trump’s fees.
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