EU Has Six Months To Withdraw Airbus Subsidies

The World Trade Organization’s (WTO) Dispute Settlement Body Wednesday officially accepted an appellate report confirming that certain EU subsidies to Airbus are illegal under WTO trade rules.

The EU and its member states now have six months to withdraw the subsidies or remove the adverse effects of those subsidies. The Dispute Settlement Body’s acceptance of the Appellate Body’s ruling in the six-year-old complaint—the largest case in WTO history—was virtually automatic under WTO rules and officially opens the six-month compliance window.

The May 18 Appellate Body ruling that was accepted upheld much, but not all, of a 2010 WTO panel report that found that certain subsidies provided by the EU and member states, Germany, France, Spain and the U.K. are incompatible with trade rules because they “caused serious prejudice” to the interests of the U.S.

Boeing on Thursday said it was pleased to see the ruling finalized and that it hoped the European Union would comply with its obligations.

For its part, Airbus said: “Airbus and Europe take compliance as seriously as Boeing and the United States government. We expect the EU to thoroughly review the WTO’s findings and in consultation with the stakeholders implement in line with WTO rules and practice. We are sure [the U.S. Trade Representative] and Boeing will do the same next year.”

A separate case brought by the EU against the U.S. over alleged subsidies to Boeing still is under consideration by the Appellate Body. A report in that case is expected to be published later this year.