AerCap Urges Trump to Expand Duty-Free Aircraft Trade Pact

The CEO of AerCap, the world’s largest aircraft leasing company, has urged U.S. President Donald Trump to renegotiate and expand the 1979 duty-free civil aircraft trade agreement, advocating for the inclusion of major non-signatory nations like China and India. The proposal marks a strategic shift in the aviation industry’s trade stance amid ongoing global tariff tensions.

AerCap CEO Aengus Kelly called the current trade landscape a unique opportunity for Trump to broker a “Trump trade accord” that would enhance the original Agreement on Trade in Civil Aircraft. “It would be a fantastic win for the president if he could improve a treaty that excludes key countries like China and India,” Kelly said in an interview with Reuters.

The 1979 pact, which eliminated tariffs on aircraft and parts among 33 countries, underpins a $75 billion trade surplus for the U.S. aerospace sector. However, fast-growing aerospace players such as China, India, South Korea, and Turkey remain outside the agreement or hold only observer status.

Kelly warned that continued trade disputes could erode U.S. dominance in aerospace manufacturing. “If retaliatory tariffs persist, the rest of the world will gradually shift to Airbus,” he said.

The White House confirmed ongoing discussions with industry leaders, stating Trump’s trade decisions prioritize American interests. A coalition of aerospace firms is expected to meet with Commerce Department officials this week.

While expanding the pact could benefit high-tech U.S. manufacturing, analysts caution that Trump’s preference for bilateral agreements may complicate efforts to broaden multilateral trade frameworks.

Related News: https://airguide.info/?s=AerCap

Sources: AirGuide Business airguide.info, bing.com, reuters.com