EU illegally supports Airbus, World Trade Organization rules

According to the agencies, experts in Geneva believe that the United States could respond with countermeasures under WTO rules. The decision is part of a dispute between Airbus and American rival Boeing. He claims that the European manufacturer’s illegitimate support is detrimental to him.

“Today’s final decision sends a clear signal: Regulatory violations, as well as illegal subsidies, will not be tolerated,” said Boeing CEO Dennis Muilenburg, commenting on the outcome of the dispute. It could also have implications for the US-EU trade dispute.

“If the EU cannot ultimately ensure that the regulatory violations and harm to American interests are stopped, the US will be forced to initiate retaliatory action against EU products,” said Robert Lighthizer, the US trade commissioner, in response to the WTO ruling.

According to the US, European countries provided Airbus with $22 billion (475 billion crowns) in state aid in connection with the production of the A380 and A350 aircraft, according to a BBC report.

Malmströmová: Just a few changes

According to EU Trade Commissioner Cecilia Malmström, the WTO has largely rejected the US argument regarding Airbus’ alleged support for the ruling. She said the EU now only needs to fulfill a few remaining obligations to be fully compliant.

In November 2016, the WTO ruled that prohibited support from the US state of Washington in the form of tax breaks for the development of new models 777X at the Everett plant, instead, he received a Boeing.

The dispute over unauthorized support for Boeing continues and could even lead to EU sanctions against the US, Airbus said. “Today’s news is only half the story,” Airbus CEO Tom Enders said.

Roderick Glisson

"Tv nerd. Passionate food specialist. Travel practitioner. Web guru. Hardcore zombieaholic. Unapologetic music fanatic."

Leave a Reply

Your email address will not be published. Required fields are marked *