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U.S, EU Agree on Five-year Truce in Airbus-Boeing Conflict

Arun Sivasankaran - : Jun 16, 2021 - : 11:27 pm

The United States and the European Union have agreed on a five-year truce in their near 17-year conflict over the allegedly unfair subsidies given to Boeing and Airbus. Many of the Trump-era tariffs have been suspended.

The two sides have been battling since 2004 in parallel cases at the World Trade Organization over subsidies for Boeing and Airbus, which each argued exposed the other to unfair competition.

In March this year, a four-month suspension of tit-for-tat tariffs by both sides were suspended, including those placed on EU cheese and wine, and U.S. tobacco and spirits.

“Grounding the Airbus-Boeing dispute delivers a major confidence boost for EU-U.S. relations,” EU trade chief Valdis Dombrovskis told a news conference after an EU-U.S. summit with U.S. President Joe Biden.

U.S. Trade Representative Katherine Tai said the two sides had agreed to clear statements on what support could be given to large civil aircraft producers. They would also work to counter investments in aircraft by “non-market actors”, she said, referring specifically to China.

Others were launching their own industries and the United States and the EU had been too busy fighting each other to pay attention, she said.

“The deal…includes a commitment for concrete joint collaboration to confront the threat from China’s ambitions to build an aircraft sector on non-market practices,” she said.

It is hoped that during the five-year suspension agreement, the two sides will reach an agreement on what support could be provided to either Boeing, Airbus, or other major aircraft manufacturers.


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