After two days of intensive negotiations in Brussels, the United States and European Union are poised to resolve the near-two-decade dispute over illegal subsidies to their respective aircraft manufacturers.
Late on Monday night, diplomats told the Financial Times that the two sides were close to “confirming a deal on subsidy rules for Airbus and Boeing.” The deal is set to be finalized on Tuesday as President Joe Biden visits Brussels for the first time.
The European Union is currently seeking approval from the three countries in which Airbus is based: France, Germany and Spain.
See Also:Olive Oil Trade NewsBarring any last-minute objections, the deal would end the longest running dispute in World Trade Organization (WTO) history and permanently eliminate tariffs on consumer goods heading from one side of the Atlantic to the other.
The news of the potential elimination of tariffs will come as welcome relief to the Spanish olive oil sector and the French and Spanish table olive sectors.
In October 2019, the WTO approved a $7.5‑billion package of U.S. tariffs on European imports after the international trade body found the E.U. to be providing illegal subsidies to Airbus.
Packaged Spanish olive oil and some green table olives from both France and Spain were hit with 25-percent tariffs, which led to drastic reductions in exports of both.
Cooperativas Agro-alimentarias, Spain’s leading agricultural cooperative, said that bottled olive oil exports to the United States decreased by 80 percent in 2020 compared to 2019, as a result of the tariffs.
The Spanish Association of Table Olive Exporters and Producers (Asemesa) said that green table olive exports to the U.S. fell by 25 percent over the same time period.
One year later, the WTO approved a $4‑billion package of E.U. tariffs on American imports after it said the U.S. was also providing illegal subsidies to Boeing.
The news of the potential deal is the latest step in a series of de-escalations, which both the Spanish government, olive oil and table olive industries have called for in recent months, hoping to take advantage of renewed goodwill to strengthen trade and security bonds on both sides of the Atlantic.
If the deal comes to fruition, it will be announced this week at a joint press conference between Biden and the European counterparts.
Related Articles
Aug. 13, 2024
Spanish Growers Eye Indian Market for Table Olives
A report emphasizes catering to local consumer preferences to capitalize on India's rapidly expanding economy and demand for healthy foods.
Jun. 10, 2024
Kern County Producer Reflects on The California Olive Oil Industry
Stefanie Wickensheimer explains how Rio Bravo Ranch crafts high-quality extra virgin olive oil in the southern San Joaquin Valley.
Oct. 1, 2024
Egypt Aims for Significant Increase in Olive Oil Exports
Officials are developing a strategy to increase exports by expanding production.
Jul. 23, 2024
The Challenges and Opportunities Facing Morocco’s Olive Oil Sector
While investments are being made to promote quality and climate resilience, some policies are hurting local consumption and inhibiting value-added production.
Apr. 12, 2024
Global Production May Exceed Expectations, but Not Enough to Move Prices
Analysts predict climate change will result in new price dynamics, with high-quality extra virgin olive oil and other market segments behaving differently.
Oct. 18, 2024
European Union Olive Oil Production Set to Grow by One-Third
Brussels’ autumn short-term outlook predicts volatile prices.
Jan. 2, 2024
Agritourism Takes Off at Arizona’s Queen Creek Olive Mill
Tourism is key to the success of Queen Creek Olive Mill’s business and the promotion of extra virgin olive oil in Arizona.
Jul. 29, 2024
Sustainability Guides Award-Winning Producer in Turkey
Garisar successfully navigates climate extremes and economic challenges, producing sustainable, award-winning quality.