The United States and European Union resolved the Airbus-Boeing government subsidies quarrel.
On June 15, 2021, President of the United States Joe Biden confirmed having reached an agreement with European Commission President Ursula von der Leyen and European Council President Charles Michel.
The two sides have agreed to suspend tariffs for five years, putting an end to the 16-year-long dispute over government subsidies for large aircraft, namely Boeing and Airbus.
“Today, with the agreement on Boeing-Airbus, we have taken a major step in resolving the longest trade dispute in the history of the WTO,” von der Leyen said.
“This deal will ensure a level playing field for American workers and companies abroad,” Biden wrote in a message on social media.
Reacting to the news, Boeing issued a statement in which it applauds the agreement and pledges to support the US government’s efforts to ensure compliance.
“Boeing welcomes the agreement by Airbus and the European Union that all future government support for the development or production of commercial aircraft must be provided on market terms,” the statement read. “The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action. Boeing will fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected.”