BRUSSELS – The United States and the European Union on Tuesday reached an agreement to end a damaging dispute over subsidies to rival aircraft makers Boeing and Airbus and phase out billions of dollars in punitive tariffs, the American envoy to trade.
U.S. Trade Representative Katherine Tai said the two sides reached a five-year deal to suspend tariffs at the center of the dispute. She said they could be reimplemented if US companies are unable to “compete fairly” with those in Europe.
“Today’s announcement resolves a long-standing irritant in US-EU relations,” 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 has seen the imposition of tariffs on a range of businesses unrelated to aircraft production, from French winegrowers to German bakers in Europe and American spirits producers in the United States, among others.
This is a developing story and will be updated.