U.S. Inks Zero-tariff Aircraft Accord with Swiss, Koreans

NBAA welcomed the latest trade agreements with the Republic of Korea and Switzerland that each exempt aircraft and parts from tariffs. These agreements follow those already in place with the European Union, Canada, Mexico, and the UK, in line with the 1979 Agreement on Trade in Civil Aircraft.

That agreement provided for a fair and tariff-free trade environment among 30 countries. Korea and Switzerland are both signatories of the agreement. Meanwhile, a 10% U.S. tariff remains in place on aircraft products from Brazil.

The Trump administration had imposed a 39% tariff on Switzerland, prompting Swiss airframer Pilatus Aircraft to place a moratorium on its shipments to the U.S. in August. Pilatus eased that stance late last month to honor its existing commitments and handed over the first PC-12 Pro to a U.S. customer alongside a PC-24 delivery. Outside of aviation, the Swiss tariff has since been reduced to 15%.

NBAA president and CEO Ed Bolen credited the 1979 agreement with contributing to a $104 billion U.S. trade surplus in the aerospace sector and supporting the creation of 9.4 million jobs within the U.S. “These new agreements not only reestablish equitable trade relations with the Republic of Korea and Switzerland but also enable the aviation industry to continue its major contributions to U.S. jobs and the economy,” Bolen said.