May 30, 2020

The WTO confirms that Airbus subsidies continue to harm the US

The American aeronautics Boeing considered Monday that the ruling of the World Trade Organization (WTO) against the European Union in the conflict with Airbus confirms that "illegal subsidies" to its rival "continue to harm the US aerospace industry (USA.)".

"Today's ruling is a complete loss for Airbus and its government sponsors," a Boeing spokesman told Efe in reaction to the verdict, which opens the door for US. keep the countermeasures that you authorized two months ago to apply to the Twenty-Eight worth 7.5 billion dollars.

The decision, Boeing said, "confirms what has been clear for a long time: the EU has not complied with the orders of the WTO despite having years to do so, and millions of euros in illegal subsidies continue to harm the US aerospace industry (USA.)".

"We hope that now Airbus and the EU will finally put their energies in the resolution of this case," he added.

The WTO determined that the EU and four of its members – France, Germany, Spain and the United Kingdom – still fail to meet the requirements that they launched when they determined that they had illegally subsidized Airbus and had to withdraw such aid.

The EU defended on Monday that it has taken 18 measures to amend its financial aid and development credit systems for two Airbus models (the A380 and the A350 XWB) in order to comply with the WTO rules, which would have resulted in the Withdrawal of subsidies or the end of their adverse results.

But the WTO concludes, among other points, that the EU has failed to demonstrate that the withdrawal of subsidies by the four countries to the A380, or similar support from the German and British Governments to the A350 XWB, has been achieved.

Airbus said in a statement that, in view of the new conclusions of the WTO panel, the United States "should immediately reduce" by about 2 billion euros (2.216 million dollars) the 7.5 billion dollars of tariffs that can legally inflict to the Twenty-eight to compensate for the damage suffered by Boeing.

The reason is that the aid that Airbus received in the early 2000s for the A380 program has already ceased to be harmful to the US manufacturer to the extent that the European giant plane is no longer sold and is going to stop manufacturing because it has not given the commercial result that was expected when it was conceived.

Asked about it, Boeing declined to respond and referred to the panel's findings, which found "the 'indirect' effects of the A380 subsidies" and the "direct" effects of the A350 XWB "as a" genuine and substantial "cause of a" current loss of sales "for the US industry.

Since October 18, the dispute has resulted in US tariffs amounting to 7.5 billion dollars to goods mainly from Spain, Germany, France and the United Kingdom.

. (tagsToTranslate) Boeing (t) OMC (t) Airbus (t) harming (t) US

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