Beyond the Storm: Navigating the Uncharted Waters of the Post-Pandemic Corporate Landscape
As the storm of the pandemic begins to subside, corporate leaders face a landscape that has forever changed. The question …
June 16, 2021: -The United States and European Union said Tuesday they have resolved a 17-year-long dispute over aircraft subsidies, agreeing to suspend disputed tariffs for five years.
“This meeting has started with a breakthrough on aircraft,” said European Commission President Ursula von der Leyen, who met with President Joe Biden at a U.S.-EU summit in Brussels. “This opens a new chapter in our relationship because we move from litigation to cooperation on aircraft — after 17 years of dispute.”
U.S. trade representative Katherine Tai said in a video call Tuesday that, “Today’s announcement resolved a longstanding trade irritant in the U.S.-Europe relationship.”
“Instead of fighting with one of our closest allies, we are finally coming together against a common threat,” she added, mentioning China.
Last week, CNBC reported that the EU was pressing the White House to reach a deal to end trade tariffs imposed during the Trump administration about the Airbus and Boeing dispute that emerged in 2004.
The EU-U.S. relationship hit a low during the previous White House administration, with Trump often criticizing Europe, accusing the EU of being worse than China with its trade practices.
Trump imposed duties worth $7.5 billion on European products after the World Trade Organization ruled that the EU had given unfair subsidies to Airbus.
Shortly afterward, the EU imposed tariffs worth $4 billion on U.S. products from another WTO ruling that said the U.S. had granted illegal aid to Boeing.
Boeing shares were up 0.6% in the premarket on Tuesday morning, while Paris-listed Airbus shares were trading higher by 0.5%.
Separately, the United Kingdom also said Tuesday that it was hoping for a similar deal with the United States within the next few days.
The U.K. was a member of the EU when the dispute first emerged and was also hit by the trade tensions developed during the Trump presidency.
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