The European Union and the United States are preparing to resolve the trade dispute between Airbus and Boeing after 17 years

The European Union and the United States are preparing to solve the problem of a 17 years of contention over aircraft support دعمThe threat of punitive tariffs has lifted billions of dollars from their economies in strengthening transatlantic relations.

Diplomats and officials confirmed Monday night that two days of intense negotiations in Brussels have left the European Union and the Biden administration on the cusp of confirming an agreement on Airbus’ subsidy rules. Boeing. The hack is scheduled to be completed on Tuesday at the first EU-US summit meeting of US President Joe Biden in Brussels.

People close to the talks on Monday night said that my government AirbusThe three original EU nations – Germany, France and Spain – were consulted on an agreement that could be confirmed Tuesday morning if there were no last-minute hitches.

People familiar with the talks said the deal, which could collapse, is likely to take the form of a multi-year agreement on support limits.

The hack will remove a cloud of uncertainty hanging over the aviation sector while removing the threat that consumer goods in the European Union and the United States could once again be hit with punitive tariffs due to the dispute.

$7.5 billion

Additional duties imposed by the United States on European goods in October 2019

These fees – on a wide range of products from French wine to American spirits and cane molasses – are currently حالي suspended After the European Union and the United States agreed in March to lift it for four months and start negotiations on a solution.

The dispute between Airbus and Boeing is one of the longest running battles in the history of the World Trade Organization — a dispute that both sides increasingly acknowledge they cannot afford as they seek closer cooperation in dealing with China’s model of state capitalism.

EU Trade Commissioner Valdis Dombrovskis held talks with US Trade Representative Catherine Taye and Trade Secretary Gina Raimondo in the days leading up to the summit as the two sides sought to reach an agreement on the line.

Tai’s office declined to comment.

Companies on both sides of the Atlantic have long called for a solution. It became even more pressing after the US hit $7.5 billion worth of European exports with additional tariffs in October 2019, while the EU imposed additional duties on $4 billion worth of US exports last year. Both sets of measures were in line with the provisions of the World Trade Organization to the benefit of each side.

It turns out that both sides over the years have failed to properly implement the provisions of the WTO panel on illegal subsidies to aircraft manufacturing heroes.

But trade officials in the European Union and the United States stressed the complexity of the dispute – as each side grapples with requiring the other to comply with World Trade Organization decisions. The nature of support on both sides of the Atlantic is also quite different – EU officials point to massive US defense contracts as an example.

The end of the dispute between Airbus and Boeing may remove a major nuisance in commercial relations, but others remain.

Brussels last month refrained from increasing tariffs on US goods as a goodwill gesture amid the ongoing row Tariffs in the Trump Era on European steel and aluminum.

Economists, too, have yet to fully bury their differences digital taxThe issue is now linked to broader international conversations.

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