By Olivia Bugault

 

The U.K. and the U.S. have reached an agreement to suspend the 17-year trade fight over government subsidies awarded to plane makers Airbus SE and Boeing Co., the U.K.'s Department for International Trade said Thursday, two days after a similar peace deal between Washington and Brussels.

The two sides have agreed to suspend retaliatory tariffs for five years, which marks a major victory for U.K. industries such as Scotch Whisky, the ministerial department said.

"The disagreement has hit industries such as cashmere, machinery, and single-malt Scotch whisky that employ tens of thousands of people across the UK," the department said. "The Scotch Whisky Association estimates the tariffs have cost the sector hundreds of millions of pounds in lost revenue," it said.

Earlier this year, the U.K. and the U.S. decided to temporarily suspend the retaliatory tariffs while they negotiated a longer-term solution to the dispute.

 

Write to Olivia Bugault at olivia.bugault@wsj.com

 

(END) Dow Jones Newswires

June 17, 2021 09:51 ET (13:51 GMT)

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