The U.S. and EU officials agreed to tariff settlement for five years, putting away dispute over aircraft subsidies.
- The two nations imposed import duties worth $11.5 billion on each other’s exports.
- The deal suspended the tariffs as the officials work on resolving other issues such as paid outstanding subsidies.
- The new arrangement opens a new chapter of transatlantic cooperation in the EU-US relations as China continues to challenge the duopoly of Boeing and Airbus.
The announcement opens up for the support of the commercial aircraft producers and a mechanism for addressing future concerns. One of the largest disputes in the history of WTO started with 7.5B$ french government support for Airbus in 2019 and continued with 4$ billion Boeing benefits from the U.S. in 2020.
BA gains +0.35%, AIR gains 0.28% on news.
Source: Bloomberg.com.
