UK to Drop Retaliatory EU Tariffs on US Goods
London, Dec 9 (AFP/APP): Britain said Wednesday it will drop EU tariffs on US goods adopted as part of a long-running dispute over subsidies for aircraft manufacturers Airbus and Boeing, just as London hopes to secure a post-Brexit trade agreement with Washington.
US President Donald Trump had last year imposed 25 percent tariffs on wine, cheese, olives and other European delicacies in a battle over subsidies to planemaker Airbus. The EU responded recently with its own round of tariffs on imports of US some farm produce, including wheat and tobacco plus strong alcohol and chocolate, after the World Trade Organization faulted Washington over state aid for Boeing.
But Prime Minister Boris Johnson’s government has now decided to suspend the measures from January 1, when Britain leaves the European customs union and single market. Britain left the EU on January 31 this year but remains under the bloc’s rules under December 31 while it tries to establish the terms of its new relationship. London said it was dropping the retaliatory tariffs resulting from the Boeing dispute to encourage the US to agree to a negotiated outcome.
EU officials have also said they would prefer a negotiated settlement but have followed through on implementing the tariffs even though Trump lost reelection as president and will be replaced by Democrat Joe Biden in January. International Trade Secretary Liz Truss added that Johnson’s administration was seeking to “de-escalate” the spat.
“As an independent trading nation once again, we finally have the ability to shape these tariffs to our interests and our economy, and to stand up for UK business,” she added. “Ultimately, we want to de-escalate the conflict and come to a negotiated settlement so we can deepen our trading relationship with the US and draw a line under all this. She noted that Britain was keeping retaliatory tariffs imposed after the United States imposed “illegal and unfair tariffs” on British steel.
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