Commercial dispute between Boeing and Airbus was terminated

Created on 24.06.2021 09:04

The United States and the European Union have resolved a 16-year dispute over subsidies for their largest aircraft manufacturers Boeing and Airbus, according to Kapital with reference to Vedomosti. The corresponding decision was adopted by the head of the European Commission Ursula von der Leyen and US President Joe Biden at the US-European summit in Brussels.

The dispute between the two global largest aircraft manufacturers has been lasting over 16 years. Boeing accused Airbus of getting cheap loans from European governments and had insisted on imposing 100 percent duties on rival aircrafts. The European company claimed that Boeing is receiving public assistance from Washington as defense contracts and tax breaks.

The WTO concluded that both companies were illegally receiving subsidies. However, the Airbus was the first in completing the case, WTO has allowed Washington to impose duties on European goods totaling $ 7.5 billion in October 2019. In April 2021, the US and the EU agreed to freeze reciprocal duties for six months in connection with a dispute over this issue.

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