EU has failed to stop illegal Airbus subsidies: WTO

FE Team | Published: May 16, 2018 21:43:31

GENEVA, May 16 (AFP): The European Union (EU) has failed to remove its illegal subsidies for Airbus, the World Trade Organisation (WTO) said Tuesday, in a major victory for the United States (US) and its national aviation giant, Boeing.
The decision by the appellate division of the WTO's Dispute Settlement Body is not subject to appeal and clears the way for the US to seek billions of dollars in retaliatory tariffs against European exports.
The decision marks a milestone in a case that has dragged on for more than a decade.
Boeing said the victory secured on its behalf by the US trade office could see the EU slapped with "the largest-ever WTO authorisation of retaliatory tariffs".
In a statement, the Chicago-based firm said those tariffs could amount to $22 billion (18.6 billion euros), equivalent to the amount in illegal subsidies that Airbus has received from the EU, according to Boeing's tally.
"Tuesday's final ruling sends a clear message: disregard for the rules and illegal subsidies are not tolerated," Boeing said.
The office of the United States Trade Representative (USTR), which represents Washington at the WTO, called the decision "an important victory" for President Donald Trump's administration.
But, as always in the epic legal battle between the aviation industry's two main powerhouses, the situation is not quite so clear-cut.
First, the US must ask the WTO to approve specific retaliations against EU products. Brussels will be able to challenge that decision.
The EU also sought to portray itself as a victor of sorts following Tuesday's ruling -- another standard move in the Airbus-Boeing legal showdown.