The UK and US have today agreed a new joint approach to the
longstanding trade conflict over aerospace tariffs.
The United States will temporarily suspend all retaliatory
tariffs on direct exports from the UK to the US resulting from
the Airbus dispute for four months, in an effort to reach a
negotiated solution to the 16- year long dispute. This measure
will come into force on Monday 8 March, backdated to today (4
March).
In 2018, the year before the tariffs were imposed, the US
imported around £550m of goods affected by these measures from
the UK. The tariff suspension will help protect jobs on both
sides of the Atlantic in industries who have been targeted by
these unfair tariffs, particularly Scotch whisky. Scotch was the
UK’s largest food and drink export in 2020, and exports of single
malt Irish and Scotch whiskies to the US were worth around £340m
in 2018.
This follows the UK’s decision to suspend Boeing tariffs against
the US from January, a show of good faith which ensured the UK
was not hit by further tariffs and allowed both countries to work
on ending the dispute and focus on deepening our future trading
relationship.
The Prime Minister said:
From Scotch Whisky distillers to Stilton-makers, businesses
across the UK will benefit from the US decision today to
suspend tariffs in this dispute.
It shows what the UK can do as an independent trading nation,
striking deals that back our businesses and support free and
fair trade.
I now look forward to strengthening the UK-US relationship, as
we drive economic growth and build back better together.
International Trade Secretary said:
I am delighted to say that our American allies – under their
new President and his hard-working staff at the US Trade
Representative - have embraced our move to seek a fair
settlement.
This is Global Britain in action: securing new opportunities as
a newly nimble nation. The benefits will be felt across our
nation, especially in Scotland, where Scotch whisky distillers
will be able to sell at lower prices in the United States,
their most valuable market.
The easier it is for Americans to buy a bottle of Macallan,
Talisker or Glenfiddich, the more money those producers will
have to invest in their businesses, their staff and futures.
Today’s agreement shows that both the UK and the US are
determined to work together to build back better and take our
trading relationship to new heights.
Scottish Secretary said:
This is great news for the Scottish whisky industry – a
cornerstone of Scotland’s economy.
The UK Government has fought incredibly hard on this issue,
petitioning the highest levels of the US administration to
remove tariffs which were harming our Scottish exporters.
We are very pleased to have negotiated an agreement to lift
tariffs temporarily, and will use this four month window to
bring an end to the trade dispute.
I look forward to our close trading relationship with the US
going from strength to strength, opening up new opportunities
for Scottish businesses.
The Department for International Trade will continue to engage
with the US to agree a fair settlement to the dispute, that
removes punitive tariffs and works for the whole of the UK.
This announcement will protect jobs across the UK – as well as
Scotch whisky producers, it would also benefit businesses
including:
- Cashmere producers in Ayrshire, in 2018 the UK exported to
the US around £11m worth of the knitted and crocheted clothing
that were targeted by the tariffs, of which around £6m are
cashmere.
- Pig farmers in Yorkshire, in 2018 the UK exported to the US
around £38m of the pig meat that was targeted by the tariffs.
- Stilton makers in the Midlands, in 2018 the UK exported to
the US around £45m of the cheeses that were targeted by the
tariffs, of which around £4m was stilton cheese.
The UK will continue to engage with the US to agree a fair
settlement to the dispute, that permanently removes punitive
tariffs and works for the whole of the UK. This would benefit the
UK’s aerospace industry which employs people across the country,
including Wales, Belfast and Sheffield.
The government reserves the right to re-impose tariffs at any
point if satisfactory progress towards an agreeable settlement is
not made.
On a separate track, the UK and US are continuing to work towards
an ambitious trade deal, which could eliminate almost £500m in
tariffs on UK exports to the US.
