March 5th – 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 [email protected]