After the announcement of the setting up of a trade strike force to combat China’s assertive behavior, US trade czar Katherine Tai has a new task at hand.
The prominent policymaker is readying for her flight to Brussels booked next week. The visit to the EU’s headquarters targets resolving trade conflicts between the trade partners.
The discussion will particularly focus on the resolution of long-standing deviations, particularly on aircraft subsidies and industrial metals.
The riffraff between the world’s leading aircraft manufacturers, Boeing and Airbus, has been going on for the last 16 years.
An amendment will come in handy especially with the ongoing pandemic and subdued air travel, affecting demand for new commercial plane units.
During a time of uncertainty, the last thing that these manufacturers need is an additional sanction worth billions of dollars.
Currently, even the mediation of the World Trade Organization seems inefficient to help both parties in reaching consensus.
Last year, experts noted that a $4 billion award to the European Union could finally make up for the US’ $7.5 billion rewards received earlier.
International relations experts believe that the settlement will not come as simple as such a mechanism. Especially since each party protects hegemony in the air space business.
In the discussion on metals, the supranational organization demands its counterpart to lift national security tariffs affecting its exports.
The US imposed a 25% add-on on imported steel while another 10% on imported aluminum. This makes it hard for European manufacturers to penetrate the American market.
This is especially true as competition on precious commodities became tougher than ever during the pandemic.
European Union Officials Also Express Hope
Tai expressed her optimism over the clinching of a long-standing deal this time.
The policymaker highlighted that despite the rough road ahead, she will be committed to making amendments while also protecting the national interest of the United States.
In response, the European Union officials expect that a settlement could come on or before the deadline.
Both parties set July 11 as the expiration date of their respective tariff suspensions which have been in observance for quite a while.
Insiders noted that the conflicting parties have already issued a draft communique. These were targeted to reach an end to the aircraft-related dispute.
Sources familiar with the matter are also positive about the fast development of negotiations ahead of the US-EU summit next week.
Should this goes ahead, this will bring about a tighter trade relationship between the long-standing partners.