The U.S. and the
U.S. Trade Representative
The accord turns the page on a key conflict in former President
“Today’s announcement resolves a long standing trade irritant in the U.S.-EU relationship,” Tai said. “We have also with the EU agreed to clear statements on acceptable support for large civil aircraft producers and a cooperative process to address that support between our two parties.”
Under the Airbus-Boeing deal, all future passenger aircraft will be required to be developed without subsidies, the officials said.
The agreement was driven, in part, by a growing awareness among policy makers in Brussels and Washington that China’s state-sponsored aerospace manufacturer
“This really opens a new chapter in our relationship because we move from litigation to cooperation on aircraft,” European Commission President
Airbus and Boeing declined to comment.
Shares of Airbus, based in Toulouse, France, advanced 0.9% as of 12:43 p.m. in Paris, bringing this year’s gain to 27%. Chicago-based Boeing shares were up 0.7% ahead of regular U.S. trading. They have risen 15% year-to-date.
The feud dates back to 2004, when the U.S. lodged a legal case at the
In 2019, the World Trade Organization authorized the U.S. to level tariffs against $7.5 billion of EU exports annually over government support for Airbus. The EU then won permission to hit back with levies on $4 billion of U.S. goods.
While the dispute escalated during the Trump administration, the levies, which extend beyond aircraft parts to items like tractors, wine and cheese, were suspended by both sides in March as negotiators worked toward an agreement. The U.K. unilaterally suspended its tariffs with the U.S. in December as it broke from the EU.
Airbus has likely reimbursed or moved to commercial rates all launch-related financing that was deemed illegal, and any further adaptations required are likely to be immaterial, said
“I understand why the U.S. might have felt aggrieved in the first place,” Morris said. But he said that it has long looked like there were mutual infractions, and “seeking to bolt the stable door long after the Airbus horse had left was futile.”
The EU and U.S. will also commit at the summit to remove tariffs related to a steel and aluminum dispute, according to a draft of the meeting’s conclusions. In 2018, the U.S. imposed levies on metals exports from Europe on national-security grounds.
This one is trickier and there has been back-and-forth over the exact language in the drafts of the joint communique, but both sides seem to agree on pushing for a deadline by the end of the year, said the officials, who asked not to be identified because the talks are private.
The EU retaliated against the U.S. steel and aluminum measures by targeting 2.8 billion euros ($3.4 billion) of American imports with tariffs on a range of big-brand products, including
--With assistance from
To contact the reporters on this story:
Richard Bravo, Anthony Palazzo
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