Posted: Thu 3rd Oct 2019

Union warns against tit-for-tat trade war following Airbus ruling

News and Info from Deeside, Flintshire, North Wales
This article is old - Published: Thursday, Oct 3rd, 2019

Aerospace workers and industry on both sides of the Atlantic risk paying the price for a ‘reckless’ and ‘destructive’ trade war a union has warned.

The US Government has been given the green light by the World Trade Organisation (WTO) to impose a 10% tax on EU aircraft imports from 18 October.

On Wednesday the United States announced £6.1 billion of tariffs on exports from the EU in retaliation for subsidies given to Airbus.     

It’s the latest move in a long-running dispute between the US and the EU over illegal subsidies for plane manufacturers Airbus and Boeing.

Unite union has called on the UK government to play an active role in deescalating trade tensions, Unite warned that the global nature of the aviation industry meant that a tit-for-tat trade war would harm UK jobs and country’s world leading aerospace sector.

Commenting Unite assistant general secretary for manufacturing Steve Turner said: “A reckless and destructive tit-for-tat trade war benefits no one and will harm jobs and manufacturing communities on both sides of the Atlantic.

“Aerospace is a global industry. Forty per cent of Airbus components are supplied by US companies, while the planemaker and other companies, which support hundreds of thousands of UK jobs, supply into the US.

“With uncertainty over Brexit heightening, the last thing UK workers and manufacturers need is a trade war. The UK government must play an active role in trying to deescalate trade tensions and facilitating a negotiated solution to this complex dispute.”

Airbus CEO Guillaume Faury said

“Airbus will continue working with its US partners, customers and suppliers, to address all potential consequences of such tariffs that would be a barrier against free trade and would have a negative impact on not only the US airlines but also US jobs, suppliers, and air travelers.

Airbus is therefore hopeful that the US and the EU will agree to find a negotiated solution before creating serious damage to the aviation industry as well as to trade relations and the global economy.”

ADS which represents and supports over 1000 UK businesses operating in the aerospace, defence, security and space sectors urged EU and US authorities to work together to find a mutually beneficial solution.

ADS Chief Executive Paul Everitt said:

“Trade disputes and tariffs disrupt healthy competition, threaten jobs, and risk reducing the choice available to consumers, both in the aerospace market and the wider global economy.

It is in the interest of the whole global aerospace industry that a negotiated solution is found to this dispute, removing the threat of tariffs. This is a sector where low tariffs have helped manufacturers deliver safe, advanced and increasingly fuel-efficient aircraft to our customers around the world.”

“We urge the EU and US authorities to work together to find a mutually beneficial solution that sustains open and competitive markets.”

 

 

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