Zero-For-Zero Parity Now In Place With EU, UK

The National Business Aviation Association commended the administration of President Donald Trump on the announcement of a trade agreement with the European Union that includes a reversion to zero-for-zero tariffs on aerospace products. The agreement follows a similar policy established between the U.S. and the united Kingdom in June.

Earlier this year the administration imposed a 10% tariff on most aircraft and parts imported into the U.S., and on July 12 the president said he intended to enact a 30% tariff on EU imports beginning August 1. However, in a recent trip to Scotland, President Trump met with the European Union Commission President Ursula von der Leyen and struck a deal that removed aircraft and aerospace parts from all tariff duties.

The 1979 Agreement on Trade in Civil Aircraft established a zero-for-zero fair and reciprocal trade agreement on aviation products that have benefited over 30 countries. NBAA President and CEO Ed Bolen said that the 1979 agreement has undeniably led to the U.S. ascendancy in global aerospace innovation and safety.

The agreement has led to a $104 billion U.S. trade surplus in aerospace, and leads all other sectors in strengthening the country’s trade balance and creating 1.8 million jobs.

Bolen said, “NBAA applauds the administration’s decision to return to the zero-for-zero tariff agreement for aircraft and component products traded between the United States and the European Union.

“This decision restores a level playing field on trade, allowing for further innovation in aerospace, securing America’s global aerospace safety leadership and growing the exceptional trade surplus the U.S. has enjoyed in the sector for decades.”

In addition, the NBAA urged the administration to return to the zero-for-zero tariffs with all other signatories to the 1979 Agreement on Trade in Civil Aircraft.

FMI:  nbaa.org/