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5th July 2021
By: Norvisi Mawunyegah
President Joe Biden’s nomination for deputy US Trade Representative, Jayme White, said on Thursday that the US must conduct “strong monitoring” of its five-year truce with the European Union in a 17-year struggle over aviation subsidies. White told the Senate Finance Committee at his confirmation hearing that if approved, he would make it plain that the US would not hesitate to take countervailing actions against the EU if it did not comply
“I think this is clear, the United States is not a shrinking violet in terms of taking countervailing measures against the EU if they’re not complying with the deal,” White said.
In their disagreement over aviation subsidies, the US and the EU agreed last week to delay reciprocal duties for five years. Since 2004, the two countries have been fighting at the World Trade Organization over subsidies for Boeing and its European Rival Airbus, which each claimed exposed the other to unfair competition. They said they would continue to work on an overarching agreement on subsidies through a new working group on the issue, and to provide any future financing on market terms.
They also agreed to be transparent on R&D funding, avoid support that would harm the other side and cooperate to address “non-market practices” elsewhere.