The US and EU have shelved a dispute that’s lasted nearly two decades.
Today, during his first series of foreign trips, US President Joe Biden visited the main headquarters of the European Union for the first US-EU summit since 2014. During this summit, various international policies and concerns were discussed, but on at least one of those issues, an amicable agreement was successfully reached. After 17 years, an ongoing dispute between the US and EU regarding tariffs stemming from the Airbus-Boeing dispute has officially been resolved, with both sides agreeing to suspend tariffs for five years and focus on cooperation.
“This meeting has started with a breakthrough on aircraft,” said European Commission President Ursula von der Leyen. “This really opens a new chapter in our relationship because we move from litigation to cooperation on aircraft — after 17 years of dispute.”
“The agreement we found now really opens a new chapter in our relationship, because we move from litigation to cooperation,” von der Leyen added.
US trade representative Katherine Tai shared in the excitement, saying that “Today’s announcement resolves a longstanding trade irritant in the U.S.-Europe relationship.” She went on to say that both the US and EU “now have time and space to find a lasting solution through our new Working Group on Aircraft, while saving billions of euros in duties for importers on both sides of the Atlantic.”
Representatives from Airbus and Boeing were relieved to finally have an end to the dispute. “Anything that levels the playing field in this highly competitive industry and avoids this terrible lose-lose proposition of tariffs across the Atlantic or across any borders for that matter is good,” said Airbus’ Chief Commercial Officer Christian Scherer. “You don’t need to take that from Airbus… Just ask our customers.”
“The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action,” a Boeing rep said in a statement. “Boeing will fully support the US Government’s efforts to ensure that the principles in this understanding are respected.”
