The EU and US are poised to resolve a 17-year dispute over aircraft subsidies, lifting the threat of billions of dollars in punitive tariffs from their economies in a boost to transatlantic relations. 

Diplomats and officials confirmed on Monday night that two days of intensive negotiations in Brussels had left the EU and the Biden administration on the cusp of confirming a deal on subsidy rules for Airbus and Boeing. The breakthrough is set to be finalised on Tuesday at US president Joe Biden’s first EU-US summit meeting in Brussels.

People close to the talks said on Monday night that the governments of Airbus’s three home countries in the EU — Germany, France, and Spain — were being consulted on an agreement that could then be confirmed on Tuesday morning if there were no last-minute obstacles.