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European Union

EU-US Summit Aims to Resolve 17-Year Airbus-Boeing Dispute and Rebuild Transatlantic Relations

Strategic Insights

— 1 min read

As the 27-nation European Union bloc and the United States seek to revitalize their transatlantic partnership, negotiators have been working towards a breakthrough in the longstanding Airbus-Boeing dispute, a 17-year row over subsidies paid to plane makers. The EU-US summit in Brussels, attended by President Joe Biden and European Commission President Ursula von der Leyen, aims to address trade tensions, climate change, and foreign policy issues, with a focus on rebuilding trust between the two sides.

Key Takeaways:

  • The Airbus-Boeing dispute has been ongoing for 17 years, dating back to 2004 when the US called out the EU over subsidies given to Airbus in violation of WTO rules.
  • The dispute has seen the US impose tariffs on EU imports, including aluminium and steel, and the EU retaliating with tariffs on US goods, such as motorcycles and whisky.
  • The EU has been pushing for a deal, with European Commission President Ursula von der Leyen saying she is "very positive" that an agreement will be reached, while US Deputy Secretary of State Wendy Sherman described the talks as "constructive".
  • However, reported differences between the two sides remain over the kind of subsidies that should be allowed for airplane makers, with EU top trade civil servant Sabine Weyand criticizing the US for lacking commitment to resolving the standoff.
  • The EU is seeking to diversify its imports away from producers like China, with Ursula von der Leyen tweeting that Europeans want to build a strategic partnership on raw materials and increase transparency on labor conditions.
  • Airbus Chairman René Obermann warned of a prospective Chinese push into the civil aircraft market, emphasizing the need for the EU to innovate and achieve efficiency in the industry.

Statistics:

  • The EU-US Airbus-Boeing dispute has lasting for 17 years.
  • The US imposed $7.5 billion in tariffs on EU exports in 2019, with the EU authorized to impose $4 billion in tariffs on US goods.
  • The World Trade Organization has helped mediate the dispute, allowing both sides to slap tariffs on each other's imports.
  • The EU has been pushing for a deal, with a joint statement by EEAS Secretary-General Stefano Sannino and US Deputy Secretary of State Wendy Sherman describing the talks as "an important step in the revitalized transatlantic partnership".

Sources:

  • Politico
  • Reuters
  • Handelsblatt
  • Sputnik
  • Bloomberg News
  • World Trade Organization

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