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Illegal subsidies for Boeing cost Airbus up to 4 billion US dollars a year, the WTO concludes

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Airbus reported Tuesday, October 13th that the World Trade Organization (WTO) announced its decision authorizing the European Union (EU) to impose tariffs on US $ 4 billion on US goods destined for the US are exported to European Union every year.

The decision follows four previous WTO panels and appeal reports from 2011 to 2019 and confirms that the subsidies granted to Boeing are in violation of WTO rules. The verdict comes to the conclusion that illegal subsidies cost the US manufacturer Airbus USD 4 billion in sales and market share losses annually.

The EU Commission has already completed its public consultation on planned countermeasures and published the preliminary list of North American products to which they apply, including Boeing aircraft.

Guillaume Faury, CEO of Airbus, said that Airbus had not started this dispute at the WTO and did not want to continue to harm customers and suppliers in the aviation industry and any other affected sectors.

“As we have already shown, we are still ready to support a negotiation process that will lead to a fair solution. The WTO has now spoken, the EU can implement its countermeasures. It is time to find a solution so that tariffs can be removed on both sides of the Atlantic, ”said Faury.

Airbus reports that it fully supports the EU Commission in taking the necessary steps to level the playing field and reach a long-awaited agreement.

The World Trade Organization’s conclusion on subsidies for Boeing is announced three months after the European manufacturer agreed in July with the French and Spanish governments to make changes to the Repayable Launch Investment (RLI) contracts for the Airbus A350. in a final step to end a 16-year dispute and remove any justification for tariffs imposed in the US.

The tariffs imposed by the US Commercial Agent (USTR – US Treasure) have harmed all target sectors of the industry, including the US airlines themselves, according to Airbus and created a very difficult environment as a result of the US crisis COVID-19.

“We fully meet all WTO requirements. These additional changes to the A350’s RLIs show that Airbus has left no stone unturned in finding a solution, ”said Faury in July. “This is a clear sign of support for those suffering the severe impact of tariffs imposed by the USTR, especially at a time when industry is being hard hit by the fallout from the COVID-19 crisis.”

Airbus information

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