Ag to benefit from suspended tariffs under new EU & U.S. deal


Ag to benefit from suspended tariffs under new EU & U.S. deal

Tariffs on products including agricultural goods stemming from the 17-year-old Airbus and Boeing dispute are being lifted as part of a new framework negotiated this week by the US and European Union.

Greta Peisch is General Counsel for the U.S. Trade Representative. “We suspended the tariffs. That’s the most important part of this, for a period of five years and that will provide certainties for both our producers in this sector, their customers, as well as other sectors that were involved.”

Peisch says this agreement is a reset and a new way of thinking about resolving the differences, but she says the five-year tariff suspension does not stop officials from re-instituting tariffs if necessary.

Ag Secretary tom Vilsack told the Senate Ag Appropriations Subcommittee Tuesday the new framework is good news for ag exports. “It’s certainly good news today that appears a negotiated five-year hiatus on the Airbus and Boeing set of tariffs, which will certainly be good news for American agriculture.”

Vilsack says USDA will continue to work with the USTR and continue to look for new and better markets for U.S. agricultural products.

The suspension of tariffs has already been praised by agriculture groups including U.S. Wheat Associates (USW) and the National Association of Wheat Growers.

Dairy groups say the announcement is a welcomed break-through and are urging for more work to be done as the EU’s process-focused regulations run counter to their international commitments.  The National Milk Producers Federation and U.S. Dairy Export Council point to geographical indications, health certificates and import requirements by the EU as still discouraging for trade.