The Airbus and Boeing deal is a welcome part of the EU-US trade easing
A world where the U.S. and the EU can quarrel extravagantly in front of a 17-year-old Aviation subsidy disputes Evaporated. Greater threats arise where a united front is needed, whether it is the Covid-19 pandemic, climate change, destructive Russia or an increasingly confident China.The European Union and the United States can agree on their respective support for Airbus and Boeing to end the seemingly tricky trade war. This is a promising start, even if End the historic disagreement It is always easier than setting a common future agenda.
Tuesday’s deal is strong evidence that President Joe Biden is keen to end the inflammatory trade war with allies ignited by Donald Trump. Although the origin of the world’s longest trade dispute predates Trump’s presidency, the World Trade Organization in 2019 finally ruled how the United States and the European Union should subsidize their respective aviation industries, enabling both sides to impose tariffs tit-for-tat. A range of products, from American sugar cane molasses to French wines, have been hit.
Such conflicts will only distract attention from solving more pressing problems. With this in mind, similar attention should now be paid to the steel and aluminum industries, which Trump targeted with the support of national security, leading to a new round of retaliatory charges. Canada’s tariffs, which suffered a similar fate, were cancelled by Washington, but the EU tariffs still exist. Therefore, the establishment of a committed bilateral working group on this issue is welcome.
in order to Airline manufacturers themselves -And their supply chain-this deal is clearly a kind of probation and eliminates costly transfers for an industry that has been hit hard by the pandemic. Boeing and Airbus have customers on both sides of the Atlantic. Although litigation has been going on, China has been leaning towards its own national aviation champion, COMAC, and domestic airlines are queuing to place orders. This is bad news for Boeing and Airbus, both of which rely heavily on the Chinese market. COMAC has not yet posed a direct threat to the Boeing-Airbus duopoly, but it is likely to be in ten years. It has economic and technical significance for the EU and the United States to cooperate rather than confront each other.
In the communiqué on the agreement, the United States clearly wants to counter China’s ambitions than the European Union. This reflects the EU’s less willingness to look at the United States, less willing to blame China-this is a potential crux of the transatlantic reconciliation.AnnEU and Beijing reach investment agreement In December, it caused a particular resentment in Washington. Although the agreement has been frozen, the EU’s attitude towards China is even more contradictory.Other points of contention still exist, including what the United States believes The EU’s unfair targeting of large technology companies.
Then there is the substance of the Airbus and Boeing deal itself. There are many things that need to be filled. From the EU perspective, an understandable cautious attitude has also gained a foothold: One of Trump’s most destructive legacy is that years of delicate negotiations and multilateralism may be torn up overnight.
A broader US-Europe forum, the Trade and Technology Committee, has been established to set new rules from the supply chain to semiconductors. Early bilateral iterations-under the leadership of George W. Bush, for example-were nothing more than talk and gradually became irrelevant. There are signs that the urgent threat to the common interests of geopolitics and economics is finally beginning to overwhelm the second-order differences.