WTO announces EU retaliation against US for aid to Boeing

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WTO announces EU retaliation against US for aid to Boeing







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A year after having sanctioned it for its aid to Airbus, the WTO is preparing to authorize this Tuesday (10/13/2020) the European Union to adopt retaliatory measures against Washington for its aid to Boeing, a new twist in a commercial bulletin that already lasts 16 years.

The World Trade Organization (WTO) must authorize the EU to apply tariff sanctions to about 4 billion dollars in products imported from the United States, according to the Bloomberg agency.

In view of this perspective, Europe had drawn up a long list of manufactured products as of April 2019, ranging from ketchup to spare parts of cars, which could be taxed up to a maximum of 12,000 million dollars, an amount “equivalent to the estimated damages caused to Airbus by the American aid to Boeing “, explained then the European Commission.

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FOLLOWING

FOLLOWING

The European aircraft manufacturer and its US competitor, and through them Brussels and Washington, have been facing each other since October 2004 in the WTO, world trade justice of the peace, over public aid granted to the two groups, which both parties consider illegal.

The decision expected on Tuesday in favor of the EU follows the authorization granted last year to the United States to impose tariffs on European goods and services imported each year worth 7.5 billion dollars, the highest sanction ever imposed by the WTO. .

Since then, Washington has imposed punitive tariffs of around 25 percent on European Union imports such as wine, cheese and olive oil. It also raised tariffs on Airbus aircraft from 10 to 15 percent.

The European Union and some member states appealed in December a WTO decision according to which they still did not comply with the organization’s regulation with aid to Airbus. Examination of this appeal is blocked given Washington’s refusal to appoint the justices of the dispute settlement court, essential for its operation.

(afp)

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