The United States and the European Union today settled a long-time dispute over government subsidies given to airline manufacturers Boeing and Airbus, numerous media outlets are reporting .

Boeing, based in the U.S. in Seattle, and Airbus, based in France, agreed to suspend tariffs imposed as part of the trade battle for a period of five years. They will also each release statements spelling out "acceptable support" for aircraft manufacturers.

“(The truce) resolves a long-standing trade irritant in the US-Europe relationship," US Trade Representative Katherine Tai said. "Instead of fighting with one of our closest allies, we are finally coming together against a common threat."

Shares in both companies rose this morning after the news was announced. The dispute had lasted almost two decades.

“This meeting has started with a breakthrough on aircraft,” said European Commission President Ursula von der Leyen. “This really opens a new chapter in our relationship because we move from litigation to cooperation on aircraft — after 17 years of dispute.”

The dispute dates to 2004, when EU authorities said Boeing had received $19 billion in unfair subsidies from federal and state governments. The United States filed a similar claim that year over European subsidies to Airbus.

The United States and European Union have still to resolve how to tax big tech companies and a dispute over Trump-era tariffs on steel and aluminum, but ending the aircraft subsidy fight should help improve relations as both sides put more emphasis on countering China’s growth.

Tai said the US had reserved the right to reapply the tariffs if Europe doesn't uphold its side of the agreement between Boeing and Airbus.