June 23, 2021

USA proposes to impose tariffs on the EU for its aid to Airbus

USA proposes to impose tariffs on the EU for its aid to Airbus


The Government of Donald Trump proposed today the imposition of tariffs on a list of products of the European Union (EU) in which Airbus aircraft and civil aviation components stand out for public aid to the aeronautical company.

The announcement was made by the Office of the United States Trade Representative (USTR), which argued that EU subsidies to the European aviation industry each year cost more than 11,000 million dollars to the US, a figure with that Brussels does not agree.

Before making a final decision on tariffs, the United States will wait for the World Trade Organization (WTO) to arbitrate said figure in dispute, something that according to the USTR is expected for August.

"This case has been in litigation for 14 years and the time for action has arrived. The Government is preparing to respond immediately when the WTO issues its conclusion about the value of US countermeasures, "USTR chief Robert Lighthizer said in a statement.

Tariffs could affect not only Airbus and the aviation industry, but also food products such as cheese, olive oil or wine.

Washington denounced in 2004 to the WTO the aid to Airbus "after many years of try to convince the EU without success and four of its members (Spain, France, the United Kingdom and Germany) »to end the subsidies.

The European Union, for its part, has also denounced US aid. to Boeing.

The WTO, in fact, failed on March 28 that the United States has maintained subsidies to Boeing contrary to regulations that have harmed Airbus and distorted the market.

In 2018, this body also ruled that the EU had maintained aid to Airbus after a decision that prevented it.

It was then that the United States asked the WTO arbitrators to determine the amount of the sanctions that Washington can impose on EU imports for having maintained part of the subsidies to the European aeronautical manufacturer.


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