The US and Europe have ended an Airbus-Boeing dispute as they eye off threats from China.
The two sides will suspend tariffs imposed as part of a trade battle for the next five years.
The two sides have been battling since 2004 in parallel cases at the World Trade Organisation over subsidies for U.S. planemaker Boeing and European rival Airbus, which each argued exposed the other to unfair competition.
The move is set to improve trans-Atlantic relations between the US and Europe, as they seek to counter China’s rising economic influence.
The US says they struck the truce at a summit in Brussels to end ongoing disputes over government subsidies for the world’s leading commercial plane makers.
They agreed back in March to a four-month suspension of tariffs on $11.5 billion of goods from EU cheese and wine to U.S. tobacco and spirits, which the WTO had sanctioned. Businesses have so far paid more than $3.3 billion in duties.
“Grounding the Airbus-Boeing dispute delivers a major confidence boost for EU-U.S. relations,”
EU trade chief Valdis Dombrovskis told a news conference after an EU-U.S. summit with U.S. President Joe Biden.
U.S. Trade Representative Katherine Tai stated both nations agreed to clear statements on what support could be given to large civil aircraft producers.
They would also work to counter investments in aircraft by “non-market actors” – referring specifically to China.
