Dairy Industry Ireland (DII) has called for a de-escalation of the ongoing dispute between the US and EU over potential tariffs in relation to the Airbus-Boeing dispute.

The decade-long row centres on subsidies given to the airline manufacturers by their governing bodies. Airbus is jointly owned by Germany, France, Spain and Britain, while Boeing is American-owned.

Both companies have accused the other of receiving illegal state aid from their respective governments, creating unfair market advantages.

Sanctions

The Office of the United States Trade Representative has submitted a preparatory list of goods that will be liable to tariffs to the WTO if the dispute is not settled.

Rabobank has previously stated that if the US placed tariffs on EU goods that Irish butter exports to America would be disproportionately impacted in comparison with other goods. The list includes cheese and whiskey.

“This dispute has to be de-escalated, as it will be lose-lose,” director of DII Conor Mulvihill told the Irish Farmers Journal.

“DII would very much encourage that the EU and Ireland engage in a more purposeful manner with the WTO institutions to promote a settlement of this, which, if unchecked, will mean that the agri-industries of both the EU and US will suffer on the basis of an aerospace dispute that has nothing to do with them.”

Mulvihill also pointed out that the EU had just concluded a deal with US which allowed entry of a considerable sum of hormone-free beef in the hopes of de-escalating trade tensions.

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