Brussels and Washington on Tuesday struck a five-year ceasefire to their 17-year trade war over subsidies to aircraft manufacturers Airbus and Boeing, several officials told POLITICO.
The deal will be announced at a summit with Commission President Ursula von der Leyen, US President Joe Biden and their trade chiefs later Tuesday.
According to an EU official, a senior European government official and another person briefed on the details of the deal, the peace deal will not be permanent – which was the original goal of frantic negotiations – but remove the risk of tariff retaliation for five years. years.
Much of the discussion over the past few weeks has revolved around subsidy transparency and whether France, Germany and Spain should be allowed to continue to give Airbus’ launch investments. reimbursable ”- actually credits to develop new aircraft models, under which Airbus reimburses more or less, depending on the success of the new model.
So far, France, Germany, the UK and Spain have not released details of the contracts under which they grant Airbus “refundable launch investments”. But they argue that Washington is also giving Boeing indirect aid under covert defense contracts.
As part of the truce, the US and the EU also agreed on a set of principles to avoid over-subsidizing their rival aviation giants.