The United Kingdom and the United States reached a truce over the long-term dispute over Airbus and Boeing commercial aircraft subsidies, and agreed to suspend punitive tariffs on a variety of commodities including Scotch whiskey and Stilton cheese for five years.

This transaction is in The EU and the U.S. reached a similar settlement In 17 years of controversy about supporting their respective aircraft manufacturers.

The agreement was reached after a meeting between British Secretary of State for International Trade Liz Truss and U.S. Trade Representative Katherine Tai in London on Wednesday. The agreement will extend the punitive tariffs that the two countries had previously suspended, which affects Britain’s value to the United States 550 million pounds in exports.

After Brexit, the United Kingdom needs to reach a separate agreement with Washington on a dispute between the European Union and the United States. The UK is one of the four European partner countries that, together with France, Germany and Spain, has established Airbus as a major competitor to the American aircraft manufacturer Boeing. The UK remains the center of Airbus wing manufacturing operations.

Britain has Unilateral suspension Imposing punitive tariffs on American goods hopes to pave the way for a trade agreement with Washington after Brexit. The United States followed suit in March, promising a four-month suspension while the two sides negotiated longer-term arrangements.

In a joint statement, the two countries stated that this development will strengthen their “special relationship” and is based on the “revitalizing Atlantic Charter”, which affirms our commitment to maintaining and defending our enduring values ??to meet new and old challenges. Continuous commitment.

Truss said the agreement will “support employment opportunities across the country and is good news for major employers such as Scotch and aerospace and other industries.” She added that Britain can now focus on “raising its trade relationship with the United States to a new level.”

The US targets British products, including single malt Scotch whisky, cashmere and Stilton cheese.

The Scotch Whisky Association welcomed the deal. It said that due to a 25% punitive tariff on single malt, the industry has lost more than 600 million pounds in exports to the United States in the past two years. However, it pointed out that due to separate disputes between steel and aluminum, American whiskey still has to pay tariffs when entering the UK and the European Union, and expressed the hope that these issues can also be resolved as soon as possible.

The US-UK transaction reflects the conflict with the European Union. The two sides will set up a ministerial-level working group to discuss subsidies for aircraft manufacturers. The transaction also promises both parties to ensure that the provision of R&D funds to aircraft manufacturers will not harm each other. They will also work to jointly resolve “third-country non-market behaviors that may affect their large civil aircraft industry.”

Both Boeing and Airbus have repeatedly stated that they hope to reach a settlement. The two companies are cautious about the growing threat from China. China’s state-owned aviation manufacturer COMAC is preparing to launch narrow-body passenger aircraft to compete with Airbus and Boeing’s largest sellers, the A320 and 737. Western executives worry that, in the long run, they may lose important export sales to Chinese airlines, which are major customers of the two companies.