Washington, DC

Associations applaud reinstatement of zero tariffs on aerospace trade with EU

The National Business Aviation Association (NBAA) and the General Aviation Manufacturers Association (GAMA) have commended the Trump Administration in welcoming a trade agreement announced with the European Union (EU), which includes a return to zero-for-zero tariffs on aerospace products.

The agreement comes on the heels of a similar tariff policy established between the US and United Kingdom, published in June.

Earlier this year, the administration levied a 10% tariff on most aircraft and parts imports into the US. On July 12th, Trump stated his intention to apply a 30% tariff on imports from the EU, starting on August 1st. Under the agreement, the tariffs will no longer be in effect for aerospace products traded between the US and the EU.

Since the implementation of the 1979 Agreement on Trade in Civil Aircraft, over 30 countries have benefited from a zero-for-zero fair and reciprocal trade agreement in civil aviation.

NBAA President and CEO Ed Bolen noted that the 1979 Agreement on Civil Aircraft has had an undeniably positive impact on US leadership in global aerospace safety and innovation. The agreement led to a $104bn US trade surplus in the aerospace industry, leading all other sectors in bolstering the nation’s trade balance, while creating 1.8 million US jobs.

“NBAA applauds the administration’s decision to return to the zero-for-zero tariff agreement for aircraft and component products traded between the United States and the European Union,” Bolen said. “This decision restores a level playing field on trade, allowing for further innovation in aerospace, securing America’s global aerospace safety leadership and growing the exceptional trade surplus the US has enjoyed in the sector for decades.”

General Aviation Manufacturers Association (GAMA) president and CEO, James Viola, issued the following statement regarding the deal:

“We commend the Trump Administration and EU Commission officials for working together to support the civil aerospace supply chain and foster the health and growth of the aerospace industry. The global success of the general aviation manufacturing industry drives innovation, enhances safety and strengthens economic opportunity. This deal, along with the previously announced US-UK Economic Prosperity Deal, will help provide stability for the industry and drive competitiveness.

"We are grateful that the Trump Administration has acknowledged the value of a zero-tariff environment for civil aerospace with these trading partners and urge the Trump Administration to further support for the Agreement on Trade in Civil Aircraft with other trading partners.”