Charles Alcock is managing editor of the AIN Media Group, having rejoined the company in 2019. He has been an aviation journalist since 1986, and previously worked for AIN from 1990 to 2017, most recently as editor-in-chief. His main focus is on covering new aviation technology and business models, as well as international news.
Having been raised in the London area, Alcock studied at the University of Manchester in the UK and earned an honors degree in Politics and Modern History. He speaks English and French, and some German.

Managing Editor

Charles Alcock

U.S. and European Union (EU) trade representatives have been given four months to make a fresh start in resolving the long-running dispute over alleged illegal subsidies for their respective aerospace industries. Following a March 5 call between U.S. President Joe Biden and EU President Ursula von der Leyen, the two sides agreed to suspend more than $11 billion worth of tariffs on a wide array of products to allow time for fresh talks.

 


In 2019, the World Trade Organization (WTO) authorized&nbsp;the U.S. to impose around $7.5 billion in tariffs in retaliation for government subsidies that it deemed improperly given to Airbus. The sanctions included a 15 percent tariff on Airbus aircraft, but also on a variety of non-aviation-related products, including wine, cheese, and whiskey.

 


Then, in October 2020, the WTO gave the EU approval to impose retaliatory tariffs on the U.S. after determining that government subsidies for Boeing had also breached trade rules. In November, the EU started imposing tariffs valued at some $4 billion, covering goods such as tractors, orange juice, and tomato ketchup, but also including a 15 percent tariff on U.S. aircraft imported to Europe.

 


At the start of 2021, the UK, now a former EU member state, unilaterally announced it would suspend tariffs against the U.S. associated with Airbus manufacturing work conducted in Britain. On March 4, the U.S. confirmed it would reciprocate the offer to end tariffs against the UK, which, included tariffs on Scotch whiskey.&nbsp;

 


The latest development follows earlier WTO rulings that found that both the EU and the U.S. had failed to abide by earlier instructions to end illegal subsidies to Airbus and Boeing. Discussions at a political level became increasingly rancorous during the last year of the Trump administration and there seemed little prospect of a compromise.

 


Congress has yet to confirm President Biden’s nomination of Katherine Tai as&nbsp;trade representative.&nbsp;The U.S. trade representative’s office has indicated a willingness to reach a new agreement with its European counterparts, signaling what it sees as the new challenge posed by Chinese aircraft manufacturers to aerospace leaders on both sides of the Atlantic.

 


Statements from Biden and von der Leyen did not explain how the new talks will proceed and how the WTO might ratify any agreement, perhaps as some sort of out-of-court settlement. The tariffs truce lasts for an initial four-month period, implying either that more time could be made available or that tariffs would be reimposed if talks fail.

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

U.S. and EU Declare Truce over Boeing and Airbus Subsidies

U.S. and European Union trade representatives have been given four months to try to find compromise in the long-running dispute over aerospace subsidies.

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