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In a dispute between Boeing and Airbus, the United States has suspended tariffs on British products for four months. Three questions were asked about the impact of the deal, said Vincent Vicard, economist at the Center for Future Studies and International Information.
RFI: The British have decided to conclude a separate agreement with the Americans in this long-running conflict before the World Trade Organization (WTO). This is a conflict that has been going on for 16 years. What do they gain by entering into this agreement with the United States?
Vincent Wickard: With Brexit The British eliminated retaliatory trade measures against the United States. Today they win over the American side in many iconic products ranging from Scotch whiskey to Stilton cheese. But not in all products. There has been no announcement so far that all retaliatory measures on the part of the US have been abandoned. This is similar to the initial imbalance. The United States charges more for products than Europeans. Retaliation for $ 7 billion on the US side and $ 4 billion on the European side.
What is the outcome of this agreement for the Europeans?
There is no real reason to think that this could have an impact on the matter between the Biden administration and the EU. There are obvious possibilities for negotiation. But we do not know to what extent today.
By separating itself from the EU in the Boeing-Airbus conflict, London wanted to quickly negotiate a free trade agreement put forward by British Prime Minister Boris Johnson as a possible benefit to Brexit. It was hoped that London would sign the grand agreement by 2020, but epidemics and a change of power in the White House delayed the talks. Where are we in this other deal?
This is actually something that was announced on the British side, but much less on the American side. On the British side, the arguments put forward are a return to what they called for பிர Global Britain », That is, to see the world. When leaving the EU, Boris Johnson wanted to sign trade agreements with other major countries, and therefore with the United States. But on the American side, we can clearly see that there is no desire to go in this direction. After his election, Joe Biden made it very clear that the priority of his administration was the US economy. So there is no fact of signing new trade agreements with anyone including the UK. The horizon for signing such an agreement, however, will take time to negotiate anyway, which is not a short-term horizon.