Sen. Bob Menendez and US Trade Rep. Katherine Tai discuss the need for quick resolution of the EU-Airbus dispute

On May 12, 2021, the Senate Finance Committee held a hearing titled “The President’s 2021 Trade Policy Agenda” with Office of the United States Trade Representative Ambassador Katherine Tai.

Sen. Bob Menendez (D-NJ) asked Amb. Tai about that status and path forward for the currently paused tariffs issued as a result of the Airbus dispute. Amb. Tai was optimistic that there will reach a positive resolution by the end of the four-month pause.

AIFC is grateful to Sen. Menendez for engaging with Amb. Tai on this important issue and how it’s impacting food importers. The Coalition also greatly appreciates Amb. Tai’s commitment to resolving this long-standing airline dispute.

Watch the full video above or read the transcript below (edited slightly for clarity).

Transcript

Menendez: Ambassador Tai, thank you for your work in addressing the large civil aircraft dispute. New Jersey's food and wine importers certainly appreciate the four-month pause in tariffs. But since we are now about halfway through that suspension, I want to get a better understanding of the status and path forward. How are negotiations with the EU and the UK progressing on this isuse?

Tai: They are progressing. I am encouraged - I have made clear that we are interested in resolving these disputes in this four-month period. I would very much like for us to make the kind of progress between now and July that will bring us to that resolution.

Menendez: Do you expect that you'll get a resolution in the next month or so? If not, do you expect the tariffs will go back into place or will the pause be extended until an agreement can be reached?

Tai: What I have told my counterparts is that we are very serious about this four-month deadline. So let me put that there. We really need to have these disputes resolved.

Menendez: I really hope you get an agreement too, but if you don't, I'd urge you to avoid hitting restaurants and food and wine importers again with tariffs. They weren't particularly successful in bringing a resolution to the dispute. I know you need leverage, but I'd just call that to your attention. Hopefully you will be successful.