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    Belarus’s forced landing of airliner sends shock waves through industry.

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    Some airlines in Eastern Europe began diverting their planes to avoid Belarus airspace on Monday, a day after that country’s leader sent a fighter jet to force down a Ryanair flight, allowing authorities to seize an opposition journalist on board.The shocking move has unleashed a storm of criticism against Aleksandr G. Lukashenko, the Belarus president who has clung to power despite huge protests last year. The European Union is considering penalties against the country. At least two airlines said that they were diverting flights away from Belarus airspace as a precaution, but most carriers seem to be waiting to be told what to do by the European authorities.In an interview on Monday with an Irish radio broadcaster, Ryanair’s chief executive, Michael O’Leary, condemned the actions of the Belarus authorities, who ordered the plane, flying from Athens to Vilnius, Lithuania, to land in the Belarus capital of Minsk and then arrested a dissident journalist on board, Roman Protasevich, and his companion.“This was a case of state-sponsored hijacking, state-sponsored piracy,” Mr. O’Leary told interviewers on Newstalk.Mr. O’Leary, however, said he was waiting for instructions from European Union authorities in Brussels about whether to steer other flights away from Belarus.“We, like all the European airlines, are looking for guidance today from the European authorities and from NATO,” he said.He added that it would be an easy matter for his flights to avoid Belarus. “We don’t fly over Belarus much,” he said. “It would be a very minor adjustment to fly over” Poland instead, he added. Ryanair, a discount airline based in Ireland, describes itself as Europe’s largest airline group.Other airlines are already making changes.AirBaltic, the Latvian national airline, said that its flights would avoid entering Belarus airspace “until the situation becomes clearer or a decision is issued by the authorities.” The rerouted flights include ones from Riga, the airline’s home base, to Odessa in Ukraine and Tbilisi in Georgia.Another airline that flies in the area, Wizz Air, said that it would alter the path of a flight from Kyiv in Ukraine to Tallinn in Estonia so as to skirt Belarus.“We are continuously monitoring and evaluating the situation,” a spokesman for Wizz Air, which is based in Hungary, said. More

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    U.S. and Europe Will Suspend Tariffs on Alcohol, Food and Airplanes

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    AdvertisementContinue reading the main storySupported byContinue reading the main storyU.S. and Europe Will Suspend Tariffs on Alcohol, Food and AirplanesThe governments agreed to temporarily halt levies on billions of dollars of products as they search for a settlement to a long-running clash over subsidies given to Airbus and Boeing.The dispute over subsidies to Airbus and Boeing started almost two decades ago.Credit…Ulrich Lebeuf for The New York TimesMarch 5, 2021Updated 5:09 p.m. ETThe United States and European Union agreed to temporarily suspend tariffs levied on billions of dollars of each others’ aircraft, wine, food and other products as both sides try to find a negotiated settlement to a long-running dispute over the two leading airplane manufacturers.President Biden and Ursula von der Leyen, the president of the European Commission, agreed in a phone call on Friday to suspend all tariffs imposed in the dispute over subsidies given to Boeing and Airbus for “an initial period of four months,” Ms. von der Leyen said in a statement.“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,” she said.In a statement, the White House said Mr. Biden had “underscored his support for the European Union and his commitment to repair and revitalize the U.S.-E.U. partnership.”The World Trade Organization had authorized both the United States and Europe to impose tariffs on each other as part of two parallel disputes, which began almost two decades ago, over subsidies the governments have given to Airbus and Boeing. The E.U. had imposed tariffs on roughly $4 billion of American products, while the United States levied tariffs on $7.5 billion of European goods.The aircraft dispute is an early test of the Biden administration’s ability to rebuild America’s relationship with Europe, which U.S. officials see as crucial for accomplishing other trade and foreign policy goals.Former President Donald J. Trump took a more adversarial and aggressive stance toward the bloc. He accused it of cheating the United States on trade and imposed tariffs on European metals, aircraft and other products. He also threatened further tariffs against European automakers.The Biden administration has said it would restore ties with the E.U., formerly a close ally, as it seeks to form coalitions to take on bigger global problems, like China’s unfair trade practices. And it has committed to pressing Europe for a settlement on the aircraft dispute, as well as other continuing trade spats over metals, digital service taxes and other issues.“Finally, we are emerging from the trade war between the United States and Europe, which created only losers,” Bruno Le Maire, the French finance minister, said on Twitter. He added that a burden would be lifted for French winegrowers, whose sales have been pummeled by steep retaliatory tariffs that the Trump administration imposed on imports to the United States.In a joint statement with the European Union, the Office of the United States Trade Representative said the suspension would take effect “as soon as the internal procedures on both sides are completed” and that the agreement signaled “the determination of both sides to embark on a fresh start in the relationship.”The statement said both sides were committed to reaching a comprehensive solution to the disputes, which would include rules on future aircraft subsidies, monitoring and enforcement, and efforts to address “the trade distortive practices of and challenges posed by new entrants to the sector from nonmarket economies, such as China.”The Distilled Spirits Council, a trade group representing the liquor industry, called the decision a “a promising breakthrough in the longstanding trade dispute on civil aircraft subsidies, which has left much destruction to the spirits sector in its wake.”The deal would suspend a 25 percent tariff imposed by Europe on American rum, brandy and vodka, as well as a 25 percent tariff the United States imposed on liqueurs and cordials from Germany, Ireland, Italy and Spain, and Cognacs and other grape brandies from France and Germany. On Thursday, the United States said it would temporarily suspend tariffs levied against the United Kingdom, including on Scotch whisky, as part of the dispute for a period of four months.Monika Pronczuk More

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    A Top House Democrat Prods Biden to Reopen E.U. Trade Talks

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    AdvertisementContinue reading the main storySupported byContinue reading the main storyA Top House Democrat Prods Biden to Reopen E.U. Trade TalksThe chairman of the powerful Ways and Means Committee countered the president-elect’s pledge to focus first on domestic priorities.Representative Richard E. Neal, who leads the Ways and Means Committee, said a trade deal with the European Union would help restrain China.Credit…Anna Moneymaker for The New York TimesAna Swanson and Dec. 11, 2020Updated 4:56 p.m. ETWASHINGTON — The chairman of the powerful House Ways and Means Committee urged the incoming administration to renew trade negotiations with the European Union, countering a pledge by President-elect Joseph R. Biden Jr. to postpone any new trade talks until after the United States has made significant domestic investments.The statement on Friday, from Representative Richard E. Neal, Democrat of Massachusetts, raises the question of whether congressional pressure could persuade the Biden administration to take a more aggressive approach to trade negotiations with close allies.Mr. Biden has downplayed expectations for new trade negotiations early in his term, saying he wants to first wrest control of the pandemic and make substantial investments in American industries like energy, biotech and artificial intelligence.“I’m not going to enter any new trade agreement with anybody until we have made major investments here at home and in our workers,” Mr. Biden said in a New York Times interview last week.But since congressional opposition would be one of the main obstacles to any new trade agreement, the support of key Democrats could be strong motivation for initiating talks.In an interview, Mr. Neal suggested that reaching a trade agreement with the European Union would help deal with the rising economic threat from China, which has used hefty subsidies, state-owned companies and other practices to dominate industries and challenge the trade rules long embraced in the West.Mr. Neal called Mr. Biden’s approach “fine and fair,” but argued that pursuing E.U. trade negotiations “is part of a foreign policy challenge as it relates to China’s expansionist activities.”“I think that we should, right now, be preparing to match the aggressive nature of what China’s doing in the world,” he added.Mr. Biden would need the support of Mr. Neal and others to cement such a deal. So-called trade promotion authority, a statute that sets out guidelines for the executive branch as it negotiates trade deals and streamlines the approval process, is set to expire in July; any deals submitted to Congress after that could face a more difficult path to ratification. It’s not yet clear whether the Biden administration will petition Congress to renew the authority.Despite deep historic ties, the United States and Europe have not always had an easy trading relationship. The governments have argued for decades over tariffs, farm subsidies and food safety standards, and efforts to reach a comprehensive trade pact under both the Obama and Trump administrations were ultimately scrapped.But Mr. Biden has often spoken of the importance of strengthening American alliances, and he and his advisers have been eager to remedy ties with Europe that have been strained by President Trump’s confrontational trade approach. They also see much common ground with the European Union on issues like climate change, labor standards and consumer protections, as well as countering China’s growing geopolitical power and trade practices.Business & EconomyLatest UpdatesUpdated Dec. 11, 2020, 6:16 p.m. ETSilicon Valley giant Oracle will move its headquarters to Texas.A surprise savior for Britain’s pubs: Scotch eggs.Stocks dip as Brexit and U.S. stimulus talks remain stuck with time running out.Both governments appear eager to make progress on trade issues that have festered under the Trump administration, including spats over subsidies to the aircraft industry and plans by European countries to tax American technology giants.Those discussions would be led by Mr. Biden’s trade representative, Katherine Tai, whom the president-elect introduced on Friday as his nominee for the post. Ms. Tai is on Mr. Neal’s staff as the Ways and Means Committee’s chief trade lawyer.Mr. Neal declined to elaborate on conversations he’d had with Ms. Tai about pursuing trade deals with the European Union, but said, “I think we’re in broad agreement on the nature of the challenge.”Mr. Neal pointed to the United States-Mexico-Canada Agreement as a “blueprint” for new trade pacts. The accord, the successor to the North American Free Trade Agreement, was negotiated by Mr. Trump and revised by congressional Democrats, including Mr. Neal and Ms. Tai, before going into force this year.“What we were able to do with U.S.M.C.A. in terms of environment, labor standards, enforcement — I think we have some momentum,” Mr. Neal said. He said he was continuing to work to drum up support for using a European trade deal to counter China’s influence around the globe.In his statement on Friday, Mr. Neal said pursuing a trade deal with the Europe Union would be a “strategically sound choice” as the United States tried to compete economically with China and rebuild its economy from the pandemic recession.He urged the Biden administration to engage with allies in Europe and elsewhere to “formulate a strategic, far-reaching, forward-looking, robust package of programs and investments to defend against anti-competitive, anti-democratic influences of China’s policies.”AdvertisementContinue reading the main story More