US and EU Agree to Suspend Tariffs in Airbus-Boeing Dispute
The United States and the European Union have agreed to a temporary suspension of tariffs related to the
long-running Airbus-Boeing dispute.
The move is seen as an attempt to build trust and focus on resolving the issue, which has seen the US and EU impose billions of dollars worth of tariffs on each other over the past few years.
The dispute dates back to 2004, when the US first lodged a complaint with the World Trade Organization alleging illegal subsidies to Airbus by European governments.
The EU responded with a counter-complaint accusing the US of providing illegal support to Boeing.
The two sides have been locked in a legal battle ever since, with both sides coming out with victories at different points.
The dispute has seen tariffs placed on a wide range of products, from airplane parts to food items.
Under the agreement, the US and the EU will suspend tariffs for a period of four months, while negotiations take place to resolve the dispute.
The suspension will cover tariffs on over $11.5 billion worth of products.
US President Joe Biden commented on the agreement, saying, “This is a model we can build on for other challenges posed by China’s economic model.”
The Airbus-Boeing dispute has been seen as a key factor in the broader trade tensions between the US and the EU.
With the suspension of tariffs, there is renewed hope for a resolution to a long-standing issue that has caused significant strain on trans-Atlantic relations.
