European Union and United States to End Airbus-Boeing Trade Dispute

President Biden and European Union leaders agreed on a deal Tuesday to end a 17-year-old trade dispute between rival plane makers Boeing and Airbus over aircraft subsidies.

Two days of negotiations in Brussels resulted in a draft deal on how to address the issue of subsidies between the aircraft manufacturers.

“With this agreement, we are grounding the Airbus-Boeing dispute. We now have time and space to find a lasting solution . . . while saving billions of euros in duties for importers on both sides of the Atlantic,” said EU trade commissioner Valdis Dombrovskis.

U.S. Trade Representative Katherine Tai said that both parties have come to terms with a five-year agreement of suspending the punitive tariffs linked to the original dispute.

The agreement also created a minister-level working group to discuss subsidy limits and negotiate any dispute that may arise between the two sides.

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

The deal resulted in some international goodwill for Biden as he heads into a potentially heated summit on Wednesday with Russian President Vladimir Putin.

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