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Friday, December 11, 2020

USTR Welcomes UK Decision On Aircraft Tariffs With A Caveat

The UK announced they will not continue the tariffs related to the WTO case over civil aircraft as of January 1, 2021, to “de-escalate the large civil aircraft conflict and come to a negotiated settlement.

“The United States welcomes this decision and shares the UK's objective of reaching a negotiated resolution,” the Office of the U.S. Trade Representative said in a statement. “The United States does not agree, however, that the UK would have any authority to impose tariffs. Only the EU sued the United States at the WTO; the UK did not bring a case in its individual capacity. Therefore, the UK has no authority from the WTO to participate in any such action after it no longer is part of the EU.”

The statement pointed out the U.S. sued not only the EU but also France, Germany, Spain and the UK over the airbus subsidies which resulted in the WTO authorizing U.S. countermeasures against each country and the EU.