On June 15, 2021, the United States and the European Union reached an agreement to resolve the 17-year-long dispute over subsidies to their respective aircraft manufacturers, Boeing and Airbus. The agreement on trade civil aircraft is intended to bring an end to the transatlantic trade war and provide a level playing field for both companies.
The dispute began in 2004, when the US filed a case with the World Trade Organization (WTO) accusing the EU of providing illegal subsidies to Airbus. In response, the EU filed a counterclaim accusing the US of providing illegal subsidies to Boeing. The case has been ongoing since then, with both sides imposing tariffs and counter-tariffs on each other`s products.
Under the new agreement, both sides have agreed to remove the tariffs imposed on each other`s products for a period of five years. This will provide much-needed relief for industries that have been hit hard by the trade war, including the agriculture and wine industries.
The agreement also includes commitments from both sides to refrain from providing any further subsidies to their respective aircraft manufacturers. This will create a level playing field for both companies and ensure fair competition in the global aircraft market.
In addition, the agreement includes provisions for increased transparency and cooperation between the US and the EU. This will help to prevent future disputes and promote a more harmonious trading relationship between the two economic blocs.
The agreement has been hailed as a significant achievement for both the US and the EU, as well as for the global economy. It is expected to provide a boost to the aviation industry and create new opportunities for businesses on both sides of the Atlantic.
In conclusion, the agreement on trade civil aircraft marks a major milestone in the long-standing dispute between the US and the EU over aircraft subsidies. It provides a path forward for both countries to rebuild their trading relationship and create a more level playing field for businesses in the aviation industry. As a result, the agreement is expected to provide significant economic benefits for both the US and the EU, as well as for the global economy as a whole.