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WTO rules European Union failed to stop subsidies on some Airbus aircraft
16 May 2018, 02:33 | Devin Moran
DEVELOPING NEWS: WTO rules EU failed to stop subsidies on some Airbus aircraft
On Tuesday, the WTO ruled as the European Union had ignored the requests of halting all subsidies to the plane maker Airbus which has prompted United States to threaten sanctions against the European products.
In its statement on the ruling, Boeing said the decision "ends the dispute and clears the way for the United States Trade Representative to seek remedies in the form of tariffs against European imports to the United States".
The European Union continued to illegally subsidize Airbus' launch of its A350 and A380 jets in defiance of a World Trade Organization ruling, the WTO's Appellate Body ruled Tuesday.
Airbus General Counsel John Harrison said: "Airbus recognizes the importance of the WTO and the Appellate Body's findings and will do what is necessary to correct any errors and this report confirms the efforts we are making".
The two companies have been locked in a cycle of appeals and rulings for 14 years.
"Today's final ruling sends a clear message: Disregard for the rules and illegal subsidies is not tolerated", said Boeing Chairman and CEO Dennis Muilenburg.
"The result is simple: Airbus pays back its loans, Boeing pays back nothing and continues to exploit the generosity of the USA taxpayer", outgoing Airbus CEO Tom Ender said.
"The other half coming out later this year will rule strongly on Boeing's subsidies and we'll see then where the balance lies", he said.
Howard Wheeldon, an independent aerospace analyst said that despite the fiery rhetoric he anticipated a negotiated settlement.
Leeham News cites an attorney who explained that Airbus claims that 94% of Boeing's complaints have now been rejected while just 6% of claims involving the A350 and the A380 have been upheld. The report came almost 14 years after America brought the dispute to the WTO at the behest of Boeing, Airbus's closest rival.
In January Canadian plane maker Bombardier escaped a punishing 300 per cent duty on sales of its C-series aircraft in the USA which Boeing had said received an illegal subsidy from the United Kingdom and Canada. It has meanwhile levelled significant subsidy claims against Boeing.
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