U.S. Requesting WTO Compliance Panel on Airbus Subsidies
The U.S. is requesting establishment of a World Trade Organization (WTO) compliance panel on the European Union’s (EU) failure to remove WTO-inconsistent subsidies to Airbus, the office of U.S. Trade Representative said March 30. U.S. Trade Representative Ron Kirk said: “The European Union’s aircraft subsidies have cost American aerospace companies tens of billions of dollars in lost revenue. … The United States remains prepared to engage with the EU in any meaningful efforts that will lead to the goal of ending subsidized financing at the earliest possible date.”
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The WTO ruled in June 2011 that the EU and four countries gave more than $18 billion in subsidized financing to Airbus, and that European government launch aid had been used to support the creation of every model of large civil aircraft produced by Airbus. The WTO said the subsidies caused Boeing to lose sales of more than 300 aircraft. WTO rejected the EU assertion that U.S. subsidies were responsible for the viability of Boeing’s large civil aircraft production.
The EU claimed in December 2011 to have removed the WTO subsidies, but provided no evidence to support its claims. USTR said. It said the EU has even provided new ones. Consultations with the EU in January 2012, USTR said.
The U.S. asked for a meeting of the WTO Dispute Settlement Body on April 13, 2012, to address this issue, and a panel will be established at that meeting.