The US and European Union authorities have agreed to a tariff truce against Airbus SE and Boeing Co, ending a trade war that has lasted for about 17 years.
This is reported by Bloomberg.
As US Trade Representative Catherine Tye said on June 15, the deal was signed at the US-EU summit. According to its terms, in the future, Airbus and Boeing passenger aircraft will have to be developed without state subsidies.
The fees will be suspended for five years or as long as the terms of the deal are met and the parties resolve a number of issues, including outstanding fees to date.
Today’s decision removes a long-standing trade irritant in US-EU relations, “ Tai said.
The US and the EU also agreed on a position regarding acceptable support for large civil aircraft manufacturers.
Against this background, Airbus shares rose by 0.9%, and Boeing by 0.7%. Although the companies themselves have not yet commented on this announcement.
One of the reasons for this consensus is the growing influence of the Chinese aircraft manufacturer Comac, which threatens to become one of the main aviation industry competitors of the United States and the EU.
In addition, as journalists write, in a sign of progress in restoring relations between America and Europe, the summit will announce the end of the trade dispute over steel and aluminum.
Recall that the trade conflict between the US and the EU lasted since 2004 — then the Europeans accused the federal authorities of the United States of allocating 19 billion subsidies to the aircraft manufacturer Boeing. In the same year, Washington made similar claims to Brussels regarding Airbus.
We also wrote that due to the coronavirus pandemic, Boeing Corporation announced $11.94 billion in losses in 2020.