US-EU 'Aircraft Subsidy Dispute' Reaches 'Truce' After 17 Years

President Joe Biden of the United States. [Image source=Yonhap News]

[Asia Economy Reporter Choi Dong-hyun] The United States and the European Union (EU) have reached an agreement to end a nearly 17-year-long dispute over aircraft subsidies.

According to major foreign media including the Associated Press on the 15th (local time), Ursula von der Leyen, President of the European Commission, stated that "the US and the EU have agreed to suspend the tariff war triggered by the aircraft subsidy dispute for five years." She added, "This opens a new chapter in our relationship," explaining that "after 17 years of conflict, we are moving from litigation over aircraft to cooperation."

Katherine Tai, United States Trade Representative (USTR), announced in Brussels that both sides agreed to suspend tariffs at the center of the dispute for five years, and explained that the tariffs will remain suspended as long as the terms of the agreement are maintained. The EU expressed the view that five years is sufficient time to resolve the dispute.

Representative Tai emphasized, "Today's announcement resolves a long-standing irritation in US-EU relations," and added, "Instead of fighting with one of our closest allies, we will finally unite against common threats."

The EU and the US have been engaged in a 17-year-long dispute since 2004 over subsidies to Airbus and Boeing. The relationship worsened after the inauguration of the Trump administration. The Trump administration imposed tariffs on $7.5 billion worth of EU products in 2019, alleging that the EU provided illegal subsidies to Airbus, and the EU retaliated with tariffs on $4 billion worth of US products. The imposition of retaliatory tariffs has been suspended for four months since last March.

This content was produced with the assistance of AI translation services.