EU, US suspend tariffs in Airbus-Boeing dispute for 4 months

Oman Investment & Financials Bonds, up 8.33 per cent, was the top gainer while Raysut Cement, down 6.67 per cent, was the top loser

BRUSSELS: The European Union and the United States have agreed to suspend all tariffs related to the Airbus-Boeing dispute for an initial period of four months, European Commission President Ursula von der Leyen announced.

In a statement following a phone call with US President Joe Biden, von der Leyen said both sides were committed to solving the dispute, dpa reported.

“As a symbol of this fresh start, President Biden and I agreed to suspend all our tariffs imposed in the context of the Airbus-Boeing disputes, both on aircraft and nonaircraft products, for an initial period of four months,” she said.

The commission’s announcement is the latest move in a dispute between Brussels and Washington that dates back to the early 2000s. They accuse each other of unfair state support for the world’s two largest aircraft companies, the European Airbus consortium and its US rival Boeing.

The two sides have imposed tariffs on aviation and non-aviation goods worth billions of dollars.

“This is excellent news for businesses and industries on both sides of the Atlantic, and a very positive signal for our economic cooperation in the years to come,” von der Leyen said.

The US imposed tariffs on certain EU products following a ruling by the World Trade Organization (WTO). Declaring European subsidies for Airbus illegal, the trade body had permitted the US to raise tariffs on products worth 7.5 billion dollars.

Just in November, the European Commission imposed additional tit-for-tat tariffs on US products worth some 4 billion dollars (3.36 billion euros) following another ruling by the WTO. The tariffs will be scrapped on both sides for a fourmonth period, as soon as internal procedures on both sides are completed.

The move marks an improvement in transatlantic relations that were strained under Biden’s predecessor Donald Trump, who accused EU countries of harming US interests.

European Commission Executive Vice President Valdis Dombrovskis, who holds the trade portfolio, welcomed the announcement as a “major breakthrough.” In a similar vein, Franck Riester, French minister delegate for foreign trade and economic attractiveness, said the suspension of tariffs was “excellent news” for the French economy and its winegrowers.

Certain non-sparkling wine from France and Germany had been among the products hit by US tariffs.

MUSCAT: The MSM index closed at 3,697.06 points, up 0.80 per cent from the previous close. The Sharia Index ended up 0.24 per cent at 541.57 points. Oman Investment & Financials Bonds, up 8.33 per cent, was the top gainer while Raysut Cement, down 6.67 per cent, was the top loser. Shares of Ahli Bank were the most active in terms of the number of shares traded while Oman United Insurance was most active in terms of turnover.

A total number of 748 trades were executed during the day’s trading session, generating a turnover of OMR2.8 million, with more than 18.6 million shares changing hands. Out of 47 traded stocks, 18 advanced, 11 declined and 18 remained unchanged. At the session close, Omani investors were net sellers for OMR190,000 while foreign investors were net buyers for OMR118,000 followed by GCC & Arab investors for OMR72,000 worth of shares.

Financial Index closed at 5,699.11 points, up by 1.29 per cent. Sohar International Bank, Oman Arab Bank, National Bank Oman,

United Finance and HSBC Bank Oman were up 7.06 per cent, 4.29 per cent, 2.86 per cent, 2.38 per cent and 2.33 per cent respectively. Ominvest was the only loser by 1.78 per cent.

Industrial Index closed at 4,665.87 points, down 1.36 per cent. National Aluminum Product was the only gainer by 6.31 per cent. Raysut Cement, Oman Cement, Dhofar Cattle Feed, Jazeera Steel Product and Al Maha Ceramics were down 6.67 per cent, 4.82 per cent, 4.35 per cent, 3.14 per cent and 1.44 per cent respectively.

Services index was up by 0.26 per cent before closing at 1,534.74 points. National Gas, Ooredoo, Oman Investment & Financials and Sembcorp were up 3.76 per cent, 2.50 per cent, 2.47 per cent and 1.16 per cent respectively. Oman National Engineering, Al Suwadi Power, Renaissance Service, Oman Telecommunication and Muscat Gases were down 2.06 per cent, 1.92 per cent, 1.76 per cent, 1.08 per cent and 0.49 per cent respectively.