Thursday, October 10, 2019

Boeing Wins at the WTO against Airbus

The World Trade Organization (WTO) found in favor of Boeing and the U.S. in retaliation for the unlawful EU subsidization of Airbus. The October 2, 2019, $7.5 billion annual award is the largest made, and comes after almost 15 years of litigation at the WTO. The U.S. successfully argued that the EU / four of its member states conferred more than $18 billion to Airbus in subsidized financing.

This entitles the U.S. to impose an additional 10 percent duty (tariff) on airplanes from France, Germany, Spain, and the United Kingdom, as well as an additional 25 percent duty on certain goods including single malt Irish and Scotch whiskies, coffee from Germany, cheeses from several countries, and certain garments from the United Kingdom.

EU officials claim to have little interest for mutual imposition of countermeasures. They have emphasized that such countermeasures strain transatlantic trade relations and inflict damage on citizens and businesses. The timing of the new tariffs is politically sensitive given the recent global imposition of national security tariffs by the U.S. on steel and aluminum, as well as the potential addition of global national security tariffs on automobiles and parts.

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