EU and USA reach agreement: subsidy dispute expected to be resolved

The row over subsidies for Boeing and Airbus has raged for 17 years. Billions of punitive tariffs were imposed. The European Union is expecting an agreement with the United States at today’s summit.

According to consistent media reports, in the year-long dispute over government subsidies to aircraft manufacturers Airbus and Boeing, a preliminary EU-US agreement is imminent. “I am very convinced that in our conversation with our American friends today we will find agreement on the Airbus/Boeing issue,” EU Commission President Ursula von der Leyen said shortly before talks between EU leaders and new US President Joe Biden. Brussels. The solution is in the interest of both parties.

$1 billion in punitive tariffs

For 17 years now, both sides have been arguing over subsidies for US aircraft company Boeing and its European rival Airbus. Both were partly right by the World Trade Organization (WTO). During the tenure of Biden’s predecessor, Donald Trump, the United States received permission from the World Trade Organization to impose punitive duties of $7.5 billion on European goods and services. A year later, the European Union obtained WTO approval to impose punitive duties on US imports totaling $4 billion.

A few weeks after Biden took office, the two sides agreed in March to hold off on further punitive tariffs until July 11. During this time, a solution to the conflict must be negotiated. US Trade Representative Catherine Taye discussed the support dispute on Monday in her first in-person meeting with fellow EU member Valdis Dombrovskis.

Have time for the final solution

Reuters and AFP, citing negotiating circles, reported that the suspension of punitive tariffs between the United States and the European Union, which was in effect until July 11, should be extended. According to Reuters information, the US government intends to suspend tariffs for five years. But according to AFP, it remains unclear when the suspension should be extended. It was reported that the final agreement was taking a long time due to the large number of documents involved. Therefore, a temporary conflict freeze is intended to give the negotiating teams the time they need to fully settle the dispute.