Caobisco joins major coalition calling for end to EU/US Boeing trade dispute
The Caobisco European confectionery association has joined a coalition totalling 13 industry groups calling for the EU and US to de-escalate a multi-billion Boeing and Airbus trade dispute, writes Neill Barston
Together, the combined organisations – which include representatives from market segments including automotive, agricultural and milk processing bodies that are affected or threatened by the ongoing major aircraft subsidies case.
They are seeking a negotiated settlement to avoid further damage to sectors, with amid the prospect of tariffs being imposed by both the EU and US on each others’ wider economies.
The move by the coalition of 13 trade bodies follows the publication of WTO report on the Boeing dispute. Its significant ruling authorised Europe the ability to impose a total of $4 billion in tariffs, after an American decision to start charging tariffs worth a reported sum of $7 billion on EU goods in relation to state support having been given to Boeing’s commercial rival, Airbus.
In response to the situation, as a gesture of goodwill, the EU-based coalition of associations is seeking the US to suspend additional tariffs imposed on European products while negotiations are ongoing.
“All our sectors have been threatened or already hit by punitive tariffs for months, as part of a trade dispute over which we have no control and which is not related to us. In light of the economic slowdown caused by the COVID-19 crisis, worsened by recent restrictions and localised lockdowns across Europe, we can no longer afford to foot the bill for such unrelated disputes,” said the coalition in a joint statement.
“While trade tensions between US and EU are complex, with serious issues on both sides, punitive tariffs cause irreparable harm to companies of all sizes and weaken their entire supply chains, at a time when growth and job creation are most needed”.
As Caobisco noted, the apparent lack of progress on a negotiated settlement is highly concerning for the undersigned associations, as is the potential threat of rapid escalation, at the detriment of sectors already suffering due to the global pandemic.
“We hope that the risk of further escalation will be avoided and that the voice of reason and moderation will prevail, on both sides of the Atlantic. Both sides need to realise that they have nothing to gain in continuing to fuel the negative cycle. The EU & the US should instead build on the good will generated by the tariff reduction agreement concluded in August and speed up work on a negotiated solution”, concluded the coalition.