US and EU agree to end 16-year Airbus-Boeing trade dispute

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

The United States and the European Union have agreed to resolve their 16-year-long trade dispute over government subsidies to Boeing and Airbus.

Both the U.S. and EU agreed to suspend tariffs for five years in a deal announced on Tuesday. President Joe Biden met and worked with European Commission President Ursula von der Leyen on the matter. The White House later hailed the deal in a news release as “a major breakthrough.”

In a statement after the agreement, Biden said that the agreement will allow the U.S. and EU to better work together to counter Chinese economic influence.

“The U.S. and EU will work together in specific ways that reflect our high standards, including collaborating on inward and outbound investment and technology transfer,” Biden said. “It’s a model we can build on for other challenges posed by China’s economic model.”

WHAT BIDEN AND JOHNSON REALLY WANT FROM THE NEW ATLANTIC CHARTER

Von der Leyen also touted the deal on Twitter. She pointed out that the squabble was the longest trade dispute in the history of the World Trade Organization. U.S. Trade Representative Katherine Tai told reporters that “this deal allows us to start turning the page on this longstanding dispute.”

The dispute began in 2004 when the EU accused Boeing of receiving $19 billion in unfair subsidies. The U.S. then responded by saying that the EU also provided unfair subsidies to Airbus, which is headquartered in the Netherlands.

Tuesday’s agreement has received bipartisan praise, with Rep. Kevin Brady, the top Republican on the House Ways and Means Committee, describing it as an “important initial step in defending thousands of good American manufacturing jobs in aviation against the European Union’s illegal subsidies to Airbus.”

“Rather than replace these unfair subsidies with new ones, the EU must hold firm to its long overdue commitment to remove them—or else face reimposition of WTO-authorized tariffs,” he said in a statement.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Another breakthrough in the trade dispute between the U.S. and EU came in March when the U.S. agreed to suspend some tariffs on products from the United Kingdom that were applied under former President Donald Trump's administration because of the airline subsidy dispute.

The 2019 tariffs targeted $7.5 billion worth of European goods. Among the tariffs the U.S. agreed to suspend in March included scotch whiskey and other food and spirits.

Washington Examiner Videos

Tags: News, Boeing, Free Trade, Trade, European Union, NATO, White House, Diplomacy

Original Author: Zachary Halaschak

Original Location: US and EU agree to end 16-year Airbus-Boeing trade dispute

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting