The EU and the U.S. are ready to resolve a The 17-year aircraft subsidy battle, Lifting the threat of billions of dollars of punitive tariffs from its economies in order to promote transatlantic relations.

Diplomats and officials confirmed on Monday night that the two-day intensive negotiations in Brussels put the European Union and the Biden administration on the cusp of confirming an agreement on Airbus subsidy rules. BoeingThis breakthrough is scheduled to be finalized at the first EU-US summit in Brussels by US President Joe Biden on Tuesday.

People close to the meeting said on Monday evening that governments AirbusThe EU’s three home countries-Germany, France and Spain-are negotiating on an agreement that could be confirmed on Tuesday morning if there are no last-minute hurdles.

People familiar with the negotiations said that the agreement may still break down and may take the form of a multi-year subsidy restriction agreement.

A breakthrough will lift the cloud of uncertainty that looms over the aviation industry, and at the same time eliminate the threat that EU and US consumer products may be hit by punitive tariffs again due to the dispute.

$7.5 billion

Additional tariffs imposed by the U.S. on European goods in October 2019

These tariffs-a wide range of products from French wines to American spirits and sugar cane syrup-are currently being time out Previously, the European Union and the United States agreed in March to lift it for four months and begin negotiations on a settlement.

The Airbus-Boeing dispute is one of the longest-running battles in the history of the World Trade Organization—both parties acknowledge that they may be increasingly unable to afford this disagreement as they seek to strengthen cooperation in response to China’s state capitalist model. .

EU Trade Commissioner Valdis Dombrovskis held talks with U.S. Trade Representative Catherine Tay and Secretary of Commerce Gina Raimundo a few days before the summit, and the two sides worked hard to reach an agreement on this line.

Dai’s office declined to comment.

Companies on both sides of the Atlantic have long called for solutions. This matter has become more urgent after the United States hit $7.5 billion worth of European exports with additional tariffs in October 2019, and the EU imposed additional tariffs on $4 billion of U.S. exports last year. Both sets of measures are in line with WTO rulings and are beneficial to both sides.

Over the years, both sides have been found to have failed to properly implement the WTO’s expert group ruling on providing illegal subsidies for their aircraft manufacturing champions.

But EU and US trade officials emphasized the complexity of the dispute-both sides disputed the other’s claims to comply with WTO decisions. The nature of subsidies on both sides of the Atlantic is also very different-EU officials cited the huge US defense contract as an example.

The end of the Airbus-Boeing dispute will remove a key stimulus in the trade relationship, but other factors will remain.

Brussels did not increase tariffs on U.S. goods last month. This is a gesture of good faith in the context of continued disagreement. Tariffs in the Trump era Steel and aluminum in Europe.

The two economies have not completely concealed their differences Digital tax, This issue is now linked to broader international negotiations.

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