EU and US Reach Truce on Aircraft Subsidies After Decades-Long Dispute

The European Union and the United States have finally resolved their long-standing conflict over aircraft subsidies, marking a significant breakthrough in their relations. The dispute, which began in 2004, had resulted in parallel cases filed at the World Trade Organization (WTO) and had cost EU and US businesses over $3.3 billion in duties. The agreement, reached during a EU-US summit with President Joe Biden, involves the removal of tariffs for five years while the two sides continue discussions on an overarching deal on subsidies.

Key Takeaways:

• The EU and US have agreed to a truce on aircraft subsidies, ending a decades-long dispute that began in 2004.
• The agreement involves the removal of tariffs for five years, affecting $11.5 billion in trade between the two sides.
• The dispute had resulted in parallel cases filed at the WTO and had cost EU and US businesses over $3.3 billion in duties.
• The EU and US have agreed to cooperate on trade issues, marking a new spirit of cooperation between the two partners.
• The agreement is a significant breakthrough in EU-US relations and will have far-reaching implications for the global trade landscape.
• The EU, represented by European Commission President Ursula von der Leyen, hailed the agreement as a major step in resolving the longest trade dispute in the history of the WTO.

Statistics:

• The EU and US had imposed punitive tariffs on each other's exports, affecting a total value of $11.5 billion in trade between the two sides.
• EU and US businesses had to pay over $3.3 billion in duties as a result of the dispute.
• The agreement involves the removal of tariffs for five years, during which time the two sides will continue discussions on an overarching deal on subsidies.

Sources:

• Xinhua via COMTEX

https://www.xinhuanet.com/english/2021-06-15/c_139996098.htm