EU fails to end illegal aid to Airbus

December 03, 2019


GENEVA: A World Trade Organisation panel has ruled that the European Union has not complied with an order to end illegal subsidies for European plane maker Airbus that prompted the Trump administration to impose tariffs on nearly $7.5 billion worth of EU goods in October.

The European Union is nearly certain to appeal. A WTO compliance panel found that the EU had not taken sufficient steps to end the harm to Airbus rival Boeing.

Adding to the complexity: The WTO’s appellate body is set to become unable to hear new cases starting next week. Under the trade body’s rules, it must have at least three members, and the terms of two of those three are set to expire on Dec 11.

The US has blocked appointments to the appellate body, alleging it has overstepped WTO rules.

Published in Dawn, December 3rd, 2019