Thursday, 17 December 2020

Aid to industry from public funds

 So the UK unilaterally withdrew from EU's struggle against the US over support for Boeing? All our government has had in return is the possibility of restoring tariffs on Scotch to their normal level in a possible future mini-deal. There is no guarantee that the "lame duck" Trump presidency will do this without significant further concessions by the UK, or that the Biden presidency will be in any hurry to pick up the baton should those negotiations stall. The focus of the incoming presidency is predicted to shift from London to Strasbourg and Brussels.

It should be pointed out that the EU took its case to the WTO for imposing tariffs on the US on behalf of all its members, which then included the UK. Improper aid, in the form of preferential purchasing or exemption from State or municipal taxes, helped Boeing in competition with Airbus. Airbus is a European multi-national with, it must be remembered, a large investment in north Wales and the west of England. 

The UK concession to Trump must have soured negotiations with the EU over a beneficial trade deal. It may also be seen as a betrayal by Airbus, with all the implications that has for future investment.


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