The agreement means that the European Union and the United States will freeze their government aid to aircraft manufacturers Boeing and Airbus for another five years. British BBC It states that the agreement also means that the US and EU will remove punitive taxes equal to SEK 100 billion.
The agreement, reached during Biden’s visit to Brussels, means the parties are one step closer to a long-term solution to the 17-year conflict over aircraft manufacturers.
The trade row began when the United States expressed its dissatisfaction with European Union support for aircraft maker Airbus. The European Union, in turn, protested that the United States had provided government support to its American competitor, Boeing. Sanctions were imposed.
But now differences are being pushed aside so that Western powers can better withstand China’s growing global influence.
“It is a model that we can build on in addressing other challenges that the Chinese economic model may pose,” Biden wrote in a statement after the agreement was reached.
European Commission President Ursula von der Leyen seems to have similar thoughts:
“This opens a new chapter in our relationship as we move from arguing to cooperating on the aviation issue,” she wrote in a statement.
Tuesday’s message was well received by Swedish Foreign Trade Minister Anna Hallberg.
“Sweden welcomes the interim agreement reached between the European Union and the United States. The Commission’s efforts have been constructive and I am pleased that we can now take a step in the right direction, a clear step towards resolving this nearly 20-year conflict.” The minister said in a written comment on TT.
The World Trade Organization also expressed its satisfaction with the agreement, which it described as a “historic achievement”.
“The agreement shows that with hard work and political will, WTO members can achieve historic results,” WTO Director-General Ngozi Okonjo-Iweala said in a statement.