EU and US officials have reached an agreement in principle to end a trade dispute that has lasted since 2019, Bloomberg reports. According to the agency, the European Commission spent Monday evening discussing the terms of a potential deal with EU member states in order to have time to agree on an agreement with the American side before the EU-US summit in Brussels.
The trade dispute between the US and the EU began in 2019 after the World Trade Organization (WTO) declared illegal the subsidies that Airbus had received from European countries for 15 years. The WTO allowed the US to impose tariffs on EU goods worth up to $ 7.5 billion, and then allowed the EU to impose similar tariffs worth up to $ 4 billion. The US argued that EU tariffs affected more goods.
In March, the parties have already agreed to freeze the effect of duties, which were mutually imposed due to a trade dispute over subsidies for Boeing and Airbus, for four months. This agreement on the suspension of duties expires on July 10, and the parties intend to have time to conclude an agreement before that date.
In addition, according to Bloomberg, the EU and the US may agree on the lifting of bilateral import duties and in the dispute over steel and aluminum. The Trump administration imposed the corresponding 20 percent import duties in 2018, after which the EU, China and Russia announced retaliatory measures. However, an agreement on this issue, according to Bloomberg sources, is expected later – before the end of this year.