WTO says European Union has failed to comply in Airbus subsidies dispute

by Ben Pena September 23, 2016, 0:44
WTO says European Union has failed to comply in Airbus subsidies dispute

U.S. Trade Representative Michael Froman said the subsidies had cost U.S. workers exports worth tens of billions of dollars. While Brussels claimed the European Union had subsequently stopped that practice, the U.S. disagreed and requested a compliance panel to intervene.

Airbus said the WTO had confirmed its public-private partnership model is acceptable under global trade law.

But no reprisals are expected until the WTO process, which is already running about three years behind schedule, has been exhausted, which trade sources say could take months or years.

"After any appeal of today's compliance ruling, the next step for the USA government is to obtain WTO authorization to impose billions in retaliatory duties".

"We are closely analysing the report", the European Commission said, adding the 574-page document should be read in the context of two other WTO reports expected to address USA subsidies to Boeing in coming months.

Sen. Patty Murray, D-Wash.: "This ruling is so important to my home state of Washington and to all the American workers who show up every day in this country to build world-class products".

The two sides settled a previous dispute over subsidies in 1992, but the US walked away from that deal in 2004, arguing Airbus had an unfair advantage. The EU first raised the issue with the WTO in late 2014.

Water boy with down syndrome scores touchdown for mom battling cancer,.
Head coach Jeff Burnside, who planned the whole event, told ABC News , "Robby is just a great kid, he means a lot to the kids". Two teams outside Detroit came together Friday night to do more than just honor a player with special needs.

This is the largest trade ruling from WTO in history -- and they have sided with US manufacturers. The planemaker said the report confirmed that Europe's chosen method of partnering with its large civil aircraft industry is acceptable under worldwide trade law.

U.S Trade Representative Michael Froman declared the ruling a "sweeping victory".

In June 2011, the World Trade Organization found that the European Union and four of its member countries provided billions of dollars in subsidized financing to Airbus.

The Geneva-based trade adjudicator also said that Airbus received subsidies for its new A350XWB long-range plane, though it rejected the USA claim these were "prohibited subsidies" that have to be remedied expeditiously. "Without having to compete against illegal, market-distorting practices, Boeing should win more sales around the world".

The compliance panel ruled mostly in Boeing's favor, including on some subsidies for the A350 XWB.

In the twin-aisle market, which includes Boeing's 767, 777, and 787 planes, the panel found that the subsidies benefiting Airbus's A330, A340, and A350 XWB caused displacement or impedance of Boeing aircraft in the EU, Chinese, Korean and Singaporean markets, as well as lost sales of 50 Boeing aircraft, the USTR said. We will address the few still remaining points indicated by the report in our appeal.

In its ruling, the WTO said that "the European Union and certain member States have failed to implement the recommendations and rulings of the DSB (Dispute Settlement Body) to bring its measures into conformity with its obligations" under global trade rules.

Recommended News


TOP News

Apple Pay comes to the Mac (but you still need an iPhone)
As in El Capitan , you can delete older notifications by day, but now the day header is a much larger, more readable target. Siri can help with directions, web searches, reminders and even Mac-specific commands, such as putting the Mac to sleep.

International Olympic Committee head to ask Russian Federation for help against anti-doping hackers
Russian government spokesman Dmitry Peskov said it was "out of the question" that the Kremlin or secret services were involved in the hacking.

Canadian Team finishes Paralympics with 29 medals
Ricardinho, who made a winning goal for Brazil in the five-a-side football final carried the flag for the host nation. Notwithstanding the reduction, the country accumulated 72 total medals, 29 more than the performance at London.

Newcastle predicted XI vs Wolves: Time for revenge!
We also take a view on what was billed as a "six pointer", the match between Cardiff and Leeds United. It was an important game for us because we were at home and we have just had a great result away.

Doctor's letter: Trump in 'excellent' health, takes cholesterol medication
The release comes amid growing attention to the candidates' health histories and after Clinton was captured on video stumbling. Donald Trump's latest examination results have been released today, after it was promised to be revealed on the Dr Oz show .

Back to school in Turkey after post-coup teacher purge
So far the Turkish authorities have sent two requests for extradition of Gulen from the U.S. Turkey has pushed for a no-fly zone in Syria.

Slovakia defender Jan Durica claims England's World Cup qualifying win was fixed
England's Eric Dier says the team must become more ruthless if they are to taste success under Sam Allardyce. Rooney , 30, started the game in midfield alongside Jordan Henderson in a 4-1-4-1 system.

Rapinoe kneels again during anthem before US match
Soccer player Megan Rapinoe took a knee during the national anthem Sunday night in Atlanta prior to the U.S. Rapinoe will be in action Sunday with her club team in a game that will be nationally televised.

Philippine MPs replace head of drug killings inquiry
He added that De Lima may also have to change he phone number because she was bombarded with calls and hate messages. More than 600,000 others have surrendered to authorities for fear they also would be killed.

Miss Arkansas nabs crown and title at Miss America pageant
Skidmore, who is 21, is from Calico Rock and is a senior at the University of Arkansas majoring in broadcast journalism. She was forced to surrender her crown when it emerged that she had posed nude for Penthouse magazine.