The United States and European Union have reached a deal to end a long-standing dispute over government subsidies to airplane manufacturers Boeing and Airbus. The dispute, which dates back to 2004, has resulted in billions of dollars in tariffs on goods ranging from cheese to wine to luxury goods.
Under the new agreement, both sides will suspend tariffs on $11.5 billion worth of goods for a period of five years. The deal also includes provisions to ensure fair competition between the two companies going forward.
In a joint statement, U.S. Trade Representative Katherine Tai and EU Executive Vice President Valdis Dombrovskis said, “Today’s announcement resolves a long-standing irritant in the U.S.-EU relationship. Instead of fighting with one of our closest allies, we are finally coming together against a common threat.”
The deal is seen as a positive step in repairing the relationship between the U.S. and Europe, which has been strained under the Trump administration. It also signals a willingness on both sides to work together on other issues, such as climate change and the COVID-19 pandemic.