The World Trade Organization (WTO) said on Tuesday local time that the EU failed to cancel illegal subsidies for Airbus. The report pointed out that this is a major victory for the United States and its national aviation giant Boeing. This decision of the Appeals Department of the WTO Dispute Settlement Body also cleared the way for the United States to seek billions of dollars for retaliatory tariffs on European exports. This ruling also marks the settlement of a case that has been delayed for more than a decade.
Boeing said that the U.S. Trade Office and Boeing Company won this victory may allow the WTO to grant the EU “the largest retaliatory tariff ever.” Boeing said in a statement that these tariffs may be as high as 22 billion U.S. dollars ( 18.6 billion euros), which is equivalent to the illegal subsidies Airbus obtained from the EU. Boeing said: “Today’s final ruling sent a clear message: ignoring the rules, illegal subsidies are not tolerated.”
Washington’s U.S. representative in the WTO, the U.S. Trade Representative Office (USTR), called the decision Trump (the Donald government’s “significant victory”).
However, at present, in the long-running legal battle between the two aviation giants, there are still many problems that need to be resolved.
Cecilia Malmstrom, EU Trade Commissioner, pointed out that the ruling rejected several allegations that the United States had suffered damage to the Boeing Company, saying that this may reduce the degree of WTO approval for penalties for the EU. However, Malmström acknowledged that this ruling made the EU begin to change its approach to Airbus. In a statement, she said: “The EU will act quickly to bring the remaining subsidies for Airbus into compliance with WTO regulations.”
According to reports, the European Union’s illegal subsidy to Airbus can be traced back to 2004 at the earliest, when the United States appealed to the WTO that the European Union and the British, French, German, and Spanish governments provided WTO subsidies to important models such as the Airbus A380. Export subsidies that are prohibited under the countervailing measures agreement. The WTO Dispute Settlement Agency in Geneva on June 30, 2010 considered that part of the subsidies provided by European countries to Airbus was illegal.
In 2011, the WTO ordered Brussels and other countries that provided subsidies for Airbus to cease its activities. The European Union appealed this decision in 2016, but was eventually defeated on Tuesday.
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