US, EU Reach Truce in Major Trade Battle  

BRUSSELS - The United States and the European Union have reached an extended truce in their long-running dispute over aircraft subsidies. 

Washington is conditionally suspending for five years the tariffs on Europe that were authorized by the World Trade Organization for unfair subsidies to Airbus, which is the largest aircraft manufacturer and prime competitor to Boeing of the United States.  “This meeting has started with a breakthrough on aircraft,” said European Commission President Ursula von der Leyen at the start of formal talks on Tuesday with U.S. President Joe Biden. “This really opens a new chapter in our relationship because we move from litigation to cooperation on aircraft after 17 years of dispute.” The agreement “resolves a longstanding trade irritant in the U.S.-Europe relationship,” US Trade Representative Katherine Tai told reporters on a briefing call. “Instead of fighting with one of our closest allies, we are finally coming together against a common threat. We agreed to work together to challenge and counter China’s non-market practices in this sector in specific ways that reflect our standards for fair competition.”