European Union and USA agree 5-year ceasefire on Airbus-Boeing

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Biden called it a "major breakthrough" in a White House statement released before he wrapped up his visit to Brussels, noting that the dispute between the two airline manufacturers had lasted 16 years.

According to an EU official, a senior European government official and another person briefed on the details of the agreement, the peace deal will not be permanent - which had been the original goal of frenetic negotiations - but will remove the risk of retaliatory tariffs for five years.

A Department for International Trade spokesman said: "We have been working hard with the USA to de-escalate and agree a settlement after making the first move in suspending tariffs".

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"We have committed to meaningful cooperation", she said.

European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai reached an understanding relating to large civil aircraft, "transforming nearly 17 years of disputes into a forward-looking, collaborative platform to address bilateral issues as well as global challenges", the European Commission says. 'Instead of fighting with one of our closest allies, we are finally coming together against a common threat'.

They agreed in March to a four-month suspension of tariffs on $11.5 billion of goods from European Union wine to United States tobacco and spirits, which they had imposed in response to the row.

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"I am very positive that we will find an agreement on the Airbus-Boeing issue today in conversation with our American friends", European Commission chief Ursula von der Leyen told a news conference on Tuesday.

The United States may find it tougher to remove the metals tariffs, which also apply to other countries such as China, because they are still backed by many USA metal producers and workers. Businesses have so far paid over $3.3 billion in duties.

These tariffs were initially suspended by both sides for a four-month period back in March.

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- LEVEL PLAYING FIELD: The two sides 'agreed to clear statements on acceptable support for large civil aircraft producers that affirm the outcomes of the disputes and the intention of the parties to ensure that our workers and industries can compete on a level playing field'.

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