EU and US ‘press the reset button in business relationship



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The EU and the US are reestablishing their trade relationship under US President Joe Biden, the Tánaiste said.

They have agreed to mutually suspend their respective tariffs on an aircraft trade dispute to allow talks to take place.

It will provide great relief to exporters and importers who have been negatively affected by the levies, particularly exporters of quality products such as Irish cream liqueur, butter and cheese and importers of pet food, said Leo Varadkar.

He added: “This reduction is something for which I have strongly advocated in the EU Council of Trade Ministers.

“Ireland is committed to free and open trade. It is what allowed us to rebuild after the financial crisis and it will be crucial as we recover from the pandemic. “

The tariffs were imposed as punishment for subsidies given to rival aircraft makers Airbus and Boeing.

Its suspension came a day after the United States agreed to a moratorium on tariffs on UK imports as part of the dispute.

Trade Minister Mr. Varadkar said: “Ireland has always had a very strong and warm relationship with the United States and that includes the trade relationship.

“This decision is an early sign that both the EU and the US pressed the reset button in their business relationship.

“I hope that both parties will use this time now to make meaningful commitments to each other so that we can resolve this dispute once and for all.”

Agriculture Minister Charlie McConalogue said it was a great opportunity for a constructive dialogue to find a permanent resolution.

The value of Irish agri-food exports affected by US tariffs, in 2019 figures, is approximately € 422 million, attracting an additional € 105 million in tariffs in a full year.

This 25% tariff was applied to Irish exports to the United States of butter (€ 190.2 million) and cheese (€ 43.7 million).

IFA President Tim Cullinan said the resumption of normal trade between the EU and the US is a major breakthrough for some premium food exports.

He said: “As an export-oriented industry, it is vital that barriers are removed from some of our most valuable markets.

“We ship more than € 400 million worth of butter, cheese and spirits to the US market, where they are priced strongly based on consumer demand for quality products.

“Irish farmers depend on these markets to support the price they receive for their labor and investment.”

He said he hoped this would mark a new relationship between the two trading blocs and hoped to increase opportunities for Irish food exports.



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