The US and the EU Conclude a Trade Truce

The United States and the European Union have reached a peace agreement after a long dispute over aircraft subsidies.

The trade conflict lasted for 17 years. The parties have had simultaneous lawsuits in the World Trade Organization since 2004. The lawsuits concerned the subsidization of American aircraft manufacturer Boeing and European competitor Airbus. Both sides argued that they were oppressed by unfair competition.

Washington has promised to suspend tariffs on Europe for five years, which were imposed with the permission of the World Trade Organization due to the unjust subsidy of Airbus. Airbus is the largest aircraft manufacturer and a major competitor to American Boeing.

The agreement “resolves a long-standing issue of trade in US-European relations,” US Trade Representative Katherine Tai told reporters. “Instead of arguing with one of our closest allies, we are now uniting against a common threat. “We agreed to work together to counter China’s non-market practices in this sector and to resist them in specific ways that reflect our standards of fair competition.” Though The transatlantic dispute over steel and aluminum tariffs is still to be resolved.

Brussels is also trying to negotiate a so-called new deal with Washington. Introduce a “positive agenda” that includes strengthening the alliance to encourage WTO reform.

The two sides are likely to seek cooperation in trade and technology, such as setting compatible standards and promoting activities in the field of artificial intelligence.