The World Trade Organization (WTO) on Monday (02.12.2019) ruled against the European Union in the current dispute between Airbus and Boeing, two months after having authorized the United States to apply countermeasures against the Twenty-Eight worth 7.500 billion dollars in this same trade conflict.
Despite European claims, The WTO determined that the EU and four of its members - France, Germany, Spain and the United Kingdom - continue to fail to comply with the requirements established by the organization when it determined that it had illegally subsidized Airbus and had to withdraw such aid.
The new WTO verdict opens the door for the United States to maintain its countermeasures, which mainly affect exports from Spain and the other three countries most involved in the dispute.
The EU defended today that it has taken 18 measures to amend its systems of financial aid and development credits for two Airbus models (the A380 and the A350 XWB) in order to comply with WTO rules, which would have resulted in the withdrawal of subsidies or an end to their adverse effects.
However, the WTO concluded, among other things, that the EU has failed to demonstrate that it has succeeded in achieving the withdrawal of subsidies from the four countries to the A380, or similar aid from the German and British governments to the A350 XWB.
Since October 18, the dispute has resulted in US tariffs worth $7.500 billion on goods mainly from Spain, Germany, France and the United Kingdom.
Among the products whose exports to the US have been most affected are fresh cheese, olives and Spanish olive oil, French wine and cheeses, German coffee, biscuits and waffles, and British whisky and sweets.
The $7.500 billion figure was calculated based on the financial loss Boeing is believed to have suffered as a result of European aid to Airbus in connection with five aircraft sales campaigns that the European manufacturer won between 2011 and 2013 in different markets.
The dispute over the aviation sector has been a 15-year-old dispute between the United States and the European Union and is still ongoing at the WTO, which is expected to rule next year on a parallel dispute in which the EU has requested trade sanctions against the US for its subsidies to Boeing.
WTO publishes panel report in second compliance proceeding concerning Airbus #TradeDisputes https://t.co/fJ2EJHZJBL pic.twitter.com/eDkYsq1Ny1
— WTO in Spanish (@OMC_es) December 2, 2019
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