Brussels, Jun 15 (EFE).- The United States has reached an agreement with the European Union on a 5-year truce over the trade disputes concerning Boeing and Airbus state subsidies, US Trade Representative Katherine Tai said Tuesday.
Tai said both parties have negotiated to suspend punitive tariffs for five more years starting July 11, following the expiration of a first agreement to suspend tariffs in March for a few months in the 17-year long spat.
The dispute stems from accusations from both sides of the other oversubsidizing their home aircraft manufacturers, with punitive tariffs on goods of all sorts and economic retaliation souring transatlantic relations for over a decade.
The World Trade Organization has ruled in favour of both parties in recent years, granting the right to one and the other to impose tariffs based on the state subsidies provided to Boeing in the US and Airbus in the EU.
After the respective WTO rulings, the US imposed tariffs on EU imports worth $7.5 billion in October 2019, whilst the EU responded in 2020 with tariffs on US goods worth $4 billion. EFE