The deal comes at a crucial time for the two plane makers wrestling with the pandemic-driven downturn in air travel
BRUSSELS—The U.S. and the European Union agreed to suspend their trade dispute over government subsidies to Boeing Co. and Airbus SE , significantly easing trade tensions amid a broader effort to improve trans-Atlantic relations.
The agreement would suspend for five years tariffs that have been authorized by the World Trade Organization, U.S. Trade Representative Katherine Tai told reporters on Tuesday. A four-month suspension of the tariffs that’s already in place will be extended starting on July 11, she said. “This deal allows us to start turning the page on this longstanding dispute,” Ms. Tai said, adding that the U.S. sees the deal as a model for resolving future disputes with the EU.
European Commission President Ursula von der Leyen said earlier she was “very positive and convinced” a deal would be announced later in the day. “It is in our common interest to solve it,” she said of the dispute. Ms. von der Leyen met Tuesday with President Biden, who is in Brussels to consult with allies. Defusing the aircraft trade fight would mark a tangible achievement for his week of European diplomacy.
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