Mutual Suspension Provides a “Cooling Off” Period with a Firm Deadline for USTR and the European Commission to Reach a Settlement
NABI Press Release (2021-3) – March 5, 2021
NABI Heartily Applauds the Mutual Suspension by United States and European Union of
the Airbus and Boeing Tariffs for Four Months
NABI applauds the mutual decision by the United States and the European Union to suspend the
debilitating tariffs imposed in the Airbus and Boeing trade disputes resulting from dispute
settlement rulings from the World Trade Organization (WTO). “NABI is grateful for the good
judgments by European Commission President von der Leyen and U.S. President Biden in
reaching this decision today” said Robert M. Tobiassen, President, National Association of
Beverage Importers. A suspension is not a repeal but provides a “cooling off” period with a firm
deadline for USTR and the European Commission to reach a settlement on the state-subsidy
issue in the large civil aircraft contest that may be a starting point for the multilateral
negotiations at the WTO on the issue of state-support to domestic entities.
“This week has been a very good one for importers of wine and distilled spirits from the
European Union and the United Kingdom and for their export partners in the UK and the EU”
said Tobiassen. NABI has advocated a mutual suspension since last October when the WTO
announced the Boeing decision and both the U.S. and the EU then knew the extent of the tariff
tools available to them in volume of trade, so the battle lines were drawn.
Tobiassen added “The four-month mutual suspensions by the EU, UK, and U.S. are very
positive signals that the Biden/Harris Administration is taking real action on the campaign
promise to rebuild trust and trade relationships with our traditional allies. What is clear,
however, is the reality that the steel and aluminum tariffs will overshadow many trade policy
decisions. Here, the UK, EU, and U.S. left in place their steel and aluminum tariffs. Steel is the
juggernaut impacting many trade policies going forward.” At the close of the last century, Jared
Diamond authored the best seller “Guns, Germs, and Steel, The Fates of Human
Societies.” Thus far he is right on germs with the COVID pandemic and steel is going to be the
dictator of a myriad of trade policies going forward.
“NABI really hopes that as the four months of negotiations rigorously move forward” said
Tobiassen, “that good faith negotiations will lead to good relations and trust that foster the EU to
consider suspending the doubling of the steel and aluminum tariffs in June. Until then, Cheers.”
For further information, please contact NABI at nabipresident@bevimporters.org