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AFP statement on 5-year deal to quell US-EU aircraft subsidy dispute

Jun 15, 2021 by AFP

ARLINGTON, Va.—Americans for Prosperity (AFP) on Tuesday commented on the five-year deal reached by EU and American leaders to address a trade dispute that has lingered for 17 years. The temporary agreement, which has been termed a “band-aid” would hit pause on tariffs implemented in response to subsidies for plane manufacturers Airbus and Boeing. Both sides agreed not to implement retaliatory tariffs so long as each side adheres to the terms of the truce.

AFP Trade Policy Fellow, Dan Pearson, had this to say about the deal:

“While we are glad to know the companies and workers caught in the middle of this unnecessary trade war will be spared from the tariffs stemming from it, this ‘deal’ is more akin to punting than a first down. It doesn’t solve the underlying subsidy dispute at hand and leaves open the possibility of other countries issuing trade-distorting aircraft subsidies in the future. And, despite the rhetoric to the contrary, by not moving the ball forward, it may ultimately weaken the EU-U.S. position vis-à-vis China. America would be best served by our leaders working to resolve the subsidy issue now, providing certainty and clarity for the future.”

Pearson in March issued a statement praising the Biden administration for suspending the tariffs from the Boeing-Airbus dispute, hoping the moves then would “lead to a lasting settlement and expanded opportunities for trade in the future.”

For further information or to set up an interview, please send an email to LIsidro@afphq.org.