EU Has Not Done Enough to Prevent U.S. Tariffs Over Airbus Subsidies, WTO Decides

Date: December 10, 2019

The World Trade Organization (WTO) decided that the European Union (EU) did not do enough to block U.S.-imposed tariffs in response to European subsidies on the aerospace corporation Airbus.

According to Politico, WTO concluded that the EU had failed to show that they had withdrawn their subsidies and failed to take the steps necessary to remove the effect of those subsidies.

The first time that the WTO made a ruling on the EU’s compliance with the organization’s 2018 decision regarding subsidies for Airbus, they concluded that the EU’s support caused a major loss of sales for Boeing, a U.S. based company. Because of this, the U.S. requested authorization from the WTO to place countermeasures. The organization approved the U.S.’s plan to impose tariffs on $7.5 billion worth of goods from the EU.

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