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Original title: Elimination of tariffs of 4 billion dollars, Great Britain “extracts” from the war of subsidies between the United States and Europe
The life of the “Brexit” negotiations is hanging by a thread, and the UK seems to have started to make its way. For example, in its economic and trade relations with the United States, the United Kingdom has launched a friendly attitude to cancel tariffs. This is also reasonable, after all, the Airbus Boeing subsidy war and France and Germany seem to be closer than the UK, on the other hand, “independent” Britain also urgently needs to establish its own “circle of friends “economic and commercial. The importance of the United States is obvious.
On December 8 local time, the UK Department for International Trade declared that on the same day the UK officially “Brexit”, that is, January 1, 2021, the country will suspend retaliatory tariffs imposed on American products due to the dispute over the aircraft subsidy. .
The UK is referring to EU tariffs on $ 4 billion worth of US goods. This fee stems from the problem of illegal subsidies from Boeing and Airbus between the EU and the United States. Since 2004, the two sides have started lawsuits and tariff wars one after another on this issue.
Last time, the right to speak fell to the EU. On October 26 of this year, the World Trade Organization ruled that the EU can impose a punitive tariff of $ 4 billion on the United States each year. Subsequently, on November 9, the European Commission announced that it would impose additional tariffs on US $ 3.99 billion worth of products exported to Europe. This measure will take effect on the 10th, as the United States announced in 2019 that it will impose tariffs on EU products worth US $ 7.5 billion. Retaliatory measures.
According to the announcement issued by the European Commission on the same day, due to the violation of US subsidies to Boeing, the EU will impose tariffs of 15% on aircraft and parts imported from the United States, and tariffs of 25% on a number of products. agricultural and industrial. Tax objects are understood to include US-made aircraft, tractors, sweet potatoes, peanuts, frozen orange juice, tobacco, ketchup, and salmon.
According to the British Department for International Trade, the abolition of the EU tariffs on the United States aims to ease trade tensions with the United States and shows that the United Kingdom is serious about achieving a negotiating outcome. In a statement on the 8th, the British Secretary for International Trade, Liz Truss, stated that the United Kingdom hopes to resolve the conflict and reach an agreement through negotiation, “so that we can deepen our trade relations with the United States and resolve completely this problem. “
Obviously, the current “Brexit” has come to an end, and it is extremely important for the UK to build its own circle of economic and business friends. Not just America, but not long ago Britain has made new friends. On October 23, the “UK-Japan Comprehensive Economic Partnership Agreement” was signed and British companies will enjoy duty-free trade with 99% of Japan’s exports; On November 21, the UK and Canada announced at the same time that the two governments had reached a transitional trade extension. Agreement and plans to start negotiations on a new comprehensive free trade agreement.
Compared to Japan and Canada, the trade volume between Britain and the United States is obviously more substantial. Data shows that in 2019, the total trade volume between Britain and the United States reached 221 billion pounds. According to the prediction of the British government, if the two sides reach a free trade agreement, in the long term, the scale of the bilateral trade will increase by approximately $ 20 billion from the previous level.
Furthermore, the “Brexit” negotiations are still at a standstill, and the possibility of a “no-deal Brexit” cannot be underestimated. Shank Singham, a former British trade adviser, once said that if the “Brexit” negotiations fail, the British supply chain must move “quickly” from the EU market to other countries to avoid retaliation from the EU. The United States may be a good option.
Perhaps Britain’s idea is to establish a trade relationship with the United States after completing Brexit. However, at present, there is no clear outcome of the trade negotiations between Britain and the United States. On September 8 this year, Britain launched a new round of trade negotiations. After five rounds of trade negotiations between the UK and the US previously, both sides indicated that they have made considerable progress. The UK is expected to continue completing negotiations on a bilateral trade deal with the US after the Brexit transition period in January next year.
In addition to the benefits of trade itself, the UK has previously made clear that for the country, the most attractive aspect of the new Anglo-American trade deal is helping the UK put pressure on the EU.
“During Trump’s tenure, the special relationship between Britain and the United States has weakened, and the way the United States handles issues such as the Iranian nuclear relationship and globalization is not well recognized by the United Kingdom,” said Sun Chenghao , an assistant researcher at the China National Modern Research Institute. However, in terms of trade, the UK is relatively supportive. Of course, the two parties also have differences on issues such as the medical system. Trump encourages Britain to “Brexit” and hopes to reach a free trade deal with the UK as soon as possible.
Sun Chenghao further asserted that the Obama administration’s previous position was that he hoped Britain could handle the relationship with the EU first and then trade with the United States. However, Trump encourages “Brexit”. If a free trade agreement is reached between the UK and the US, the UK can use this as a bargaining chip to negotiate with the EU. After Biden comes to power, the relationship between Britain and the United States will not necessarily improve, but may strengthen in some respects and weaken in others.
Of course, showing good does not mean showing weakness, after all, in trading no one wants to be the “loser.” In making this statement that it will abolish EU tariffs on the United States, the United Kingdom also said that it will continue to impose tariffs on some American products, including steel and aluminum products, and a number of other commodities, such as textiles and food, in retaliation against the United States. Impose tariffs on the British steel industry.
Beijing Business Daily Reporter Tao Feng Tang Yitian
