US, EU rubberstamp truce on 17-year long Airbus-Boeing subsidy conflict

On Tuesday, US and EU had reached a landmark truce to put an end to their 17-year long dispute over aircraft subsidies

by Sourav D
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US, EU rubberstamp truce on 17-year long Airbus-Boeing subsidy conflict

On Tuesday, the European Union and the United States had agreed to a truce to put an end to their 17-year long trade row over unfair aids to Airbus SE and Boeing Co subsidies, cancelling out US tariffs on EU imports for five years what the former US President Donald Trump had inclined on EU goods.

However, businesses in both sides of the Atlantic had paid off more than $3.3 billion in additional levies so far. In factuality, the US and EU had been engaged in a rattling battle since 2004 over unfair aids to subsidies of US planemaker Boeing Co alongside its European counterpart, the world’s largest planemaker, Airbus SE, while both sides had argued that the subsidy aids had been hurting market competitiveness.

However, later last year, the World Trade Organization had ruled a partial victory for both sides that in effect had allowed the US and EU to incline additional duties on each other’s goods. Nevertheless, an ongoing raucous over additional tariffs on European and US goods seemed to be de-escalating since the Biden Administration had sworn to take charge on January 20 this year, while both parties had agreed to suspend import tariffs on $11.5 billion worth of goods ranging from EU Cheese to US tobacco and spirits for four months on March this year.

EU, US reach truce over airline subsidy dispute

In the latest flashpoint of a palpable improvement in relations between the transatlantic parties, which had severely been soured during terms of former US President Donald Trump as beforementioned, EU and US had agreed to a trade truce that in effect would peter out a WTO-sanctioned tariff for five years.

Meanwhile, signalling that the groups were working out a conclusive resolution to aircraft subsidy disputes as envisioned in March this year, EU trade chief Valdis Dombrovskis said in a news conference following latest EU-US summit with the US President Joe Biden, “Grounding the Airbus-Boeing dispute delivers a major confidence boost for EU-U.S. relations”.

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