Conflict between Boeing and Airbus: Washington maintains taxes against the EU

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The Biden administration has announced the maintenance for the moment of additional taxes on certain European products, which entered into force on January 12, in the framework of the old dispute between Boeing and Airbus in a notification, to be published Friday in the newspaper official, the services of the US Trade Representative indicate that “it is not necessary at this stage to review” this trade sanction.

Read also: Conflict between Boeing and Airbus: Washington taxes European products again

Since coming to the White House, President Joe Biden has hinted that he will not change the additional tariffs that were put in place by the administration of his predecessor Donald Trump. But he expressed his desire to renew peaceful ties with his historic allies, including the countries of the European Union (EU).

A tax inquiry

The customs duties concerned were announced at the end of 2020 and target French and German products: + 25% on non-sparkling wines, grape must and cognacs, and + 15% on certain aeronautical parts. They had entered into force a few days before the end of Donald Trump’s mandate, during which the United States’ trade relations with the EU deeply deteriorated.

“The US trade representative will continue to review the measures taken during the investigation,” it is notified in the document.

About that: The old Airbus-Boeing conflict resurfaces

The taxes applied since January are in addition to those imposed since 2019 on European products (wine, cheese, olive oil, whiskey) and on Airbus planes.

The longest trade dispute

Airbus and its American competitor Boeing, and through them the EU and the United States, have been clashing since October 2004 before the World Trade Organization (WTO) over public aid paid to the two groups, deemed illegal, in the longest commercial conflict handled by the justice of the peace of world trade.

The United States was authorized at the end of 2019 to impose taxes on nearly 7.5 billion dollars of European goods and services imported each year, the heaviest sanction ever imposed by the WTO.

Read more: Joe Biden won’t give Europeans a gift

In a mirror decision a year later, the institution authorized the EU to impose taxes on products imported from the United States. The EU has since imposed tariffs on $ 4 billion in US exports.

French President Emmanuel Macron suggested in a telephone conversation with his US counterpart Joe Biden on January 24 that the two countries settle the old dispute, financial news channel CNBC reported on Wednesday.