The European Union (EU) has asked the United States to suspend billions of dollars in import duties on each other’s products for six months. That is what European Commissioner for Trade Valdis Dombrovsky told the German newspaper Der Spiegel. In doing so, Brussels wants to go beyond the four-month tax breach it agreed last month.
It seems that the superpowers are finally coming together in connection with illegal government aid to Boeing and Airbus, the aircraft manufacturers that have been going on for almost 17 years. “We propose to suspend all reciprocal fees for six months to resolve the issue through negotiations,” Dombrovsky said. The suspension allows both parties to focus on resolving long-standing dispute.
Washington has previously accused European countries of backing Airbus with favorable loans. In turn, the EU felt that Boeing was favoring favorable tax rules. In response to this controversy, additional trade fees were imposed on both sides. In November, Brussels imposed import tariffs on US products worth about $ 4 billion. The previous US administration, led by President Donald Trump, had previously set tariffs on $ 7.5 billion worth of European products, including cheese, olives and whiskey.
European luxury group Louis Vuitton Moyd Hennessy (LVMH), liquor maker Bacardi and Microsoft are particularly affected by the charges. Business organizations VNO-NCW and MKB-Netherlands said last month that the tax would not have a major impact on the Dutch economy. It is important for the Dutch business community that the economic powers normalize trade relations.