Lifting tariffs will help both European Union (EU) and U.S. economies recover from the COVID-19 pandemic, according to some 113 organizations pressing for the permanent removal of tariffs on sectors unrelated to the ongoing transatlantic trade disputes.
The U.S.-based Personal Care Products Council (PCPC) and Flavor & Extract Manufacturers Association (FEMA) are among a global list of signatories who issued a press statement on June 10, 2021, appealing to leaders. The announcement states the following.
"In advance of the upcoming EU-U.S. summit in Brussels, the undersigned 113 organizations reiterate our call for the permanent removal of tariffs on sectors unrelated to the ongoing transatlantic trade disputes. The transatlantic relationship is of enormous economic importance to our sectors, and we are eager to see it protected and nurtured. We welcome the positive steps to de-escalate the disputes over the past few months and hope that both sides can build on this positive momentum to secure the permanent removal of retaliatory tariffs on our products.
"We are encouraged by the decision to temporarily suspend tariffs imposed in connection to the World Trade Organization Airbus-Boeing disputes and by the ongoing U.S. and EU efforts to settle the dispute before the suspension ends. Our strong desire is to see an agreement before July 11 to permanently remove these tariffs. However, predictability is essential for businesses on both sides of the Atlantic. Our sectors, therefore, request advance notice that the tariffs will not return, even if there is a need for additional time to negotiate, to account for shipping times between the EU and the U.S.
'Predictability is essential for
businesses on both sides of the Atlantic.'
"We are also encouraged by the recent U.S.-EU joint statement on addressing global steel and aluminum excess capacity, and commend the EU’s decision to postpone the second tranche of rebalancing tariffs until December 1. While this six-month respite provides reassurance to affected sectors, we call on both parties to secure an agreement before the December deadline to permanently remove existing tariffs and not to introduce new tariffs. Indeed, products across a range of sectors continue to face destructive tariffs that are harming competitiveness and negatively impacting manufacturers, producers, farmers and logistics providers and many others on both sides of the Atlantic.
"We are hopeful the recent positive momentum in both disputes will lead to the permanent removal of tariffs on unrelated sectors and an agreement not to introduce new tariffs in these transatlantic disputes. We call on our leaders to intensify negotiations to ensure that this happens without delay. Removing tariffs on unrelated sectors is essential to create the necessary certainty and stability to grow the transatlantic economy as it recovers from the COVID-19 pandemic. Securing the permanent removal of tariffs on unrelated sectors will also allow both sides to establish a positive transatlantic trade agenda and focus on common areas of interest."