A March 4, 2021, joint press release from the Office of the US Trade Representative (USTR) and the United Kingdom (UK) announced a four-month suspension of the Section 301 tariffs applied to the large civil aircraft World Trade Organization (WTO) dispute. The UK “ceased applying retaliatory tariffs in the Boeing dispute from January 1, 2021, to de-escalate the issue and create space for a negotiated settlement to the Airbus and Boeing disputes.” The Section 301 truce will last four months from the March 4th press release.
In a similar statement issued on March 5th alongside the European Union (EU), the USTR announced a four-month halt on Section 301 tariffs relating to the WTO aircraft dispute. The tariff pause will cover aircraft and non-aircraft parts and will go into effect as soon as “internal procedures on both sides are completed.” The statement affirmed that both sides are committed to reaching a long-term solution to the aircraft disputes. “Key elements of a negotiated solution will include disciplines on future support in this sector, outstanding support measures, monitoring and enforcement, and addressing the trade distortive practices of and challenges posed by new entrants to the sector from non-market economies, such as China.”
Deringer will continue to provide information regarding the aircraft dispute. If you have questions regarding your shipments, please contact your Deringer service center.