US President Joe Biden (L) and France’s President Emmanuel Macron (C) talk with President of the European Commission Ursula von der Leyen after the family photo at the start of the G7 summit in Carbis Bay, Cornwall on June 11, 2021.
PATRICK SEMANSKY | AFP | Getty Images
LONDON — The United States and the European Union have resolved a 17-year-long dispute over aircraft subsidies, the European Commission President Ursula von der Leyen said Tuesday.
As she met with President Joe Biden at a U.S.-EU summit in Brussels, von der Leyen said: “This meeting has started with a breakthrough on aircraft.”
“This really opens a new chapter in our relationship because we move from litigation to cooperation on aircraft — after 17 years of dispute.” she added, according to Reuters.
It comes after CNBC reported last week that the EU was pressing the White House to reach a deal to end trade tariffs imposed during the Donald Trump presidency, in relation to the Airbus and Boeing dispute that first 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 afterwards, the EU imposed tariffs worth $4 billion on U.S. products off the back of 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%.
This is a developing story and will be updated shortly.