The 1992 bilateral EU-US agreement, formally known as the “Agreement on Trade in Civil Aircraft”, was a significant milestone in the history of EU-US trade relations. The agreement was signed on 11 May 1992 by representatives of the European Union and the United States, with the goal of liberalizing trade between the two parties in the field of civil aircraft.
The agreement was a result of negotiations that started in 1988 and aimed to resolve the ongoing dispute between the EU and the US over aircraft subsidies. The EU had long complained that the US was providing subsidies to its domestic aircraft industry, which put European manufacturers at a disadvantage. The US, in turn, accused the EU of unfairly subsidizing Airbus, which was competing with American companies like Boeing.
The agreement sought to resolve this dispute by establishing a framework for cooperation and coordination between the EU and the US in the field of civil aircraft. It provided for the elimination of certain subsidies, the establishment of a dispute settlement mechanism, and the mutual recognition of each other’s safety and environmental standards.
One of the key provisions of the agreement was the elimination of bilateral subsidies for large civil aircraft. Under the agreement, the EU and the US agreed to eliminate subsidies for the development, production, and marketing of large civil aircraft by 1 January 2000. This provision was a significant achievement, as it addressed one of the main concerns of both parties and helped to level the playing field in the civil aircraft industry.
Another important provision of the agreement was the establishment of a dispute settlement mechanism. This mechanism, known as the EU-US Joint Committee, was tasked with resolving disputes that arose under the agreement. The committee was composed of representatives from both the EU and the US, and its decisions were binding on both parties.
The mutual recognition of safety and environmental standards was also a significant achievement of the agreement. This provision helped to reduce regulatory barriers to trade between the EU and the US by ensuring that each party recognized the other’s standards in these areas. This helped to promote greater cooperation and coordination between the two parties, which was essential for the success of the agreement.
In conclusion, the 1992 bilateral EU-US agreement was a landmark achievement in the history of EU-US trade relations. It addressed one of the main concerns of both parties, namely aircraft subsidies, and helped to level the playing field in the civil aircraft industry. It also established a framework for greater cooperation and coordination between the EU and the US, which has been essential for the success of subsequent trade agreements.