U.S. and EU resolve 17-year Boeing-Airbus dispute

LONDON — The United States and the European Union have resolved a 17-year-long dispute over aircraft subsidies, representatives from both sides confirmed on Tuesday.

The two sides agreed to suspend for five years tariffs that stem from the dispute.

As she met with President Joe Biden at a U.S.-EU summit in Brussels, European Commission President Ursula 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.

Meanwhile, U.S. trade representative, Katherine Tai, said during a videocall Tuesday that: “Today’s announcement resolves a longstanding trade irritant in the U.S.-Europe relationship.”

“Instead of fighting with one of our closest allies, we are finally coming together against a common threat,” she added, mentioning China.

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%.

—CNBC’s Leslie Josephs contributed to this article.