The United States and Britain have agreed to end a long-running trade spat over aircraft subsidies, and not impose certain retaliatory tariffs for five years, the nations announced on Thursday.
The tariffs related to a 17-year dispute between the United States and the European Union over subsidies for Boeing and Airbus, and over much of that time, Britain was a member of the bloc. The agreement mirrors one reached between the United States and European Union on Tuesday.
The pact announced on Thursday also said the two nations would work together to “address the challenge posed by nonmarket economies, such as China” in the civil aircraft sector. China has built a state-sponsored aerospace manufacturer, Commercial Aircraft Corporation of China, to compete with Boeing and Airbus.
Britain and the United States agreed to explore a coordinated approach to screen investments in the aircraft industry financed by China and other nonmarket economies. These investments could lead to “appropriation of critical technologies,” and potential national security risks, a joint statement published by the British government on Thursday said. The two countries also plan to cooperate on an approach to screen investments by British or U.S. companies in China, like joint ventures and the development of production facilities.
To read the rest of this article, please visit here