'China's non-market practices': How US, EU settled Airbus-Boeing jet subsidy battle

WION Web Team
Brussels Published: Jun 15, 2021, 08:16 PM(IST)

Europe's Airbus & American planemaker Boeing I EU Commission president Von der Leyen & US President Joe Biden Photograph:( AFP )

Story highlights

The American president quoting a poem from Easter 1916 by William Yeats said: "The world has changed, changed utterly" as Europe and the US sought to cement transatlantic ties.

US President Joe Biden and the European Union(EU) officials on Tuesday came together to remove tariffs on $11.5 billion goods from EU wine to US tobacco and spirits for five years as both sides decided to call a truce over the 17-year-old Airbus-Boeing dispute.

President Biden and European Commission chief Von der Leyen had earlier suspended retaliatory tariffs in the dispute over subsidies for the rival plane makers.

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The truce is set to last for five years which both sides feel is enough to resolve the conflict as they fear China has been trying to develop a rival passenger aircraft although Airbus and Boeing have factories in China.

US and EU had slapped $12 billion retaliatory tariffs on each other over American company Boeing and European aerospace company Airbus in a spat involving government subsidies even as reports said China was trying to push the “Made in China 2025” initiative with state-owned Comac aerospace set to develop a jet called C919 as a direct competition to Airbus and Boeing.

"We also agreed to work together to challenge and counter China's non-market practices in this sector that give China's companies an unfair advantage," Biden said.

The EU and US officials had earlier in March decided to suspend the tit-for-tat tariff war.

The American president quoting a poem from Easter 1916 by William Yeats said: "The world has changed, changed utterly" as Europe and the US sought to cement transatlantic ties.

"This really opens a new chapter in our relationship because we move from litigation to cooperation on aircraft," EU Commission president Von der Leyen said.

US Trade Representative Katherine Ta applauding the deal said: "This is a model that we will use to build on for other challenges posed by China and non-market economic competition."

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