AMSTERDAM: March 28, 2019. The World Trade Organisation, an institution Donald Trump has threatened to leave, has ruled against Boeing and the US federal government in a long-running dispute with the EU over aircraft subsidies.
Rejecting all arguments by the Trump administration, the WTO Appellate Body says the US has failed to withdraw subsidies by federal, state and local authorities to Boeing and consequently allows the European Union to seek countermeasures on imports of US products.
“This is a clear victory for the EU and Airbus. It vindicates our position that Boeing, while pointing fingers at Airbus, has not taken any action to comply with its WTO obligations, contrary to Airbus and the EU,” declared the European aerospace manufacturer’s general counsel John Harrison. “With this damaging report, continuing to deny they receive massive illegal subsidies from the United States government is no longer an option.
“Stated differently, absent settlement, the US will pay - in perpetuity – billions in annual sanctions driven by every single flying Boeing programme while the EU would face, in the worst case, only minor issues,” he added.
Harrison said he hoped the WTO ruling would now prompt the US and Boeing to join with the EU and Airbus in establishing a fair future trade environment. The US manufacturer, engaged in software upgrades to its B737 MAX aircraft, has yet to issue a statement in response to the WTO ruling.
Pictured: Evelop Airlines, part of the Madrid-based Barceló Group, has taken delivery of a new A350-900 XWB aircraft from Air Lease Corporation for its Caribbean services. A second aircraft is expected next year.
