By Joe Brock and David Shepardson
PARIS/WASHINGTON (Reuters) -U.S. Transportation Secretary Sean Duffy said on Tuesday that he wanted civil aviation to return to a 1979 zero-tariff trade agreement but noted it is part of broader trade talks.
Speaking at the Paris Airshow, Duffy said the White House was aware that the U.S. is a net exporter in aerospace, but added that it was dealing with a complicated tariff situation.
Airlines, planemakers and several U.S. trading partners have been lobbying Trump to restore the tariff-free regime under the 1979 Civil Aircraft Agreement that has yielded an annual trade surplus of $75 billion for the U.S. industry.
“You look at what free trade has done for aviation. It’s been remarkable for them. It’s a great space of net exporters. And so the White House understands that but if you go over there and you see the moving parts of what they’re dealing with, it is pretty intense and it’s a lot,” Duffy said. “I think we should take aviation off the negotiating table by going back to ’79 and that only helps us. And to take some tools away from our trading partners would be beneficial to us.”
U.S. President Donald Trump has imposed tariffs of 10% on nearly all airplane and parts imports, and in early May the Commerce Department launched a “Section 232” national security investigation into imports of commercial aircraft, jet engines and parts that could form the basis for even higher tariffs on such imports.
Aerospace companies and many countries have urged Trump not to impose new tariffs.
Trump’s executive order on a trade deal with the United Kingdom signed Monday includes tariff free treatment of airplanes and parts.
GE Aerospace CEO Larry Culp said the “U.S.-U.K. trade deal eliminating tariffs on the aerospace sector is a significant step forward in preserving the duty-free environment.”
He praised “the Trump Administration for recognizing the critical role aerospace plays in driving the U.S. economy and support this deal as a model for future trade agreements.”
(Reporting by Joe Brock in Paris and David Shepardson in Washington Editing by Mark Potter and Franklin Paul)
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