USA

EU, U.S. reach deal to end Airbus-Boeing trade dispute

The agreement would suspend the tariffs at the center of the dispute for five years.

Image: Boeing and Airbus
A Japan Airlines Boeing 767-300ER plane takes off as a Philippine Airlines Airbus A330-300 plane taxis on the runway of the Ninoy Aquino International Airport (NAIA) terminal 1 in Pasay city, metro Manila, Philippines, on Jan. 11, 2018.Romeo Ranoco / Reuters file

BRUSSELS — The United States and the European Union reached a deal Tuesday to end a damaging dispute over subsidies to rival plane makers Boeing and Airbus and phase out billions of dollars in punitive tariffs, the U.S. trade envoy said.

U.S. Trade Representative Katherine Tai said the two sides have come to terms on a five-year agreement to suspend the tariffs at the center of the dispute. She said they could be reimplemented if the U.S. companies are not able to “compete fairly” with those in Europe.

“Today’s announcement resolves a long-standing irritant in the U.S.-EU relationship,” Tai said, as President Joe Biden met with EU leaders in Brussels. “Instead of fighting with one of our closest allies, we are finally coming together against a common threat.”

The dispute saw tit-for-tat duties slapped on a range of companies that have nothing to do with aircraft production, from French winemakers to German cookie bakers in Europe and U.S. spirits producers in the United States, among many others.

This is a developing story and will be updated.

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