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WTO rules on US exports in Boeing subsidies case


October 13, 2020
Wings Staff

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Airbus released a statement following today’s decision announced by the World Trade Organization that the European Union will be authorized to impose tariffs on US$4 billion of U.S. goods exported to the European Union (EU) every year.

This follows four previous World Trade Organization (WTO) panel and appellate reports from 2011 to 2019, explains Airbus, confirming that subsidies to Boeing violate WTO rules. Airbus explains today’s WTO decision finds that illegal subsidies to Boeing cost Airbus a $US4 billion in lost sales and market share annually.

“Airbus did not start this WTO dispute, and we do not wish to continue the harm to the customers and suppliers of the aviation industry and to all other sectors impacted,” said Guillaume Faury, CEO, Airbus. “As we have already demonstrated, we remain prepared and ready to support a negotiation process that leads to a fair settlement. The WTO has now spoken. The EU can implement its countermeasures. It is time to find a solution now so that tariffs can be removed on both sides of the Atlantic.”

Airbus moves to end WTO dispute and U.S. tariffs

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Airbus on July 24, 2020, reached agreements with the governments of France and Spain to make amendments to the A350 Repayable Launch Investment (RLI) contracts in what the aircraft maker described at the time as a final step to stop 16 years of litigation at the World Trade Organization, while also removing justifications for U.S. tariffs.

The EU Commission has already completed its public consultation on the planned countermeasures and has published the preliminary list of US products they will apply to, including Boeing aircraft.