“The World Trade Organization (WTO) today in its final decision found that the European Union (EU) has failed to honor multiple previous rulings and has provided more than $22 billion of illegal subsidies to European aircraft maker Airbus”. reported Boeing.
The WTO’s ruling affirmed that France, Germany, Spain and the U.K. have failed to control the market-distorting aid for the launch of Airbus’s A380 aircraft. The WTO found in 2010 that Airbus used illegal subsidy in every jetliner it had brought to market, and continued to utilize additional illegal funding in billions to develop its A350 and A380 widebody jets.
After examining this case which was initiated in 2006, the WTO ruled, that EU had failed to eliminate unfair subsidies for two Airbus twin-aisle models.
Today’s ruling ends the dispute and clears the way for the United States Trade Representative (USTR) to seek remedies in the form of tariffs against European imports to the United States.
The authorized tariffs are likely to total billions in duties per year, unless and until Airbus addresses the illegal subsidies it received from European governments for its most recently launched airplanes.