BRUSSELS – The United States and the European Union seemed set to strike a deal to end a damaging dispute over subsidies to rival aircraft makers Boeing and Airbus and lift billions of dollars in punitive tariffs.
“I am very positive and convinced that together we will achieve this today,” European Commission President Ursula von der Leyen told reporters on Tuesday, hours before a meeting in Brussels with US President Joe Biden.
A person familiar with the talks said U.S. and EU officials have reached an agreement to end their 17-year dispute over aircraft subsidies. The person was not allowed to discuss the case and spoke on condition of anonymity.
The trade dispute escalated under the Trump administration and saw tariffs imposed on a range of businesses unrelated to aircraft production, from French winegrowers to German bakers in Europe and American spirits producers in the United States, among many others.
The United States imposed $ 7.5 billion in tariffs on European exports in 2019 after the World Trade Organization ruled the EU failed to comply with its decisions on subsidies to Airbus , based in France. The EU hit back last November with $ 4 billion in punitive tariffs after the WTO ruled that the United States had provided illegal subsidies to Boeing.
In March, weeks after Biden took office, the two sides agreed to suspend tariffs.