The US threatened to impose sanctions on the European Union after the World Trade Organization Airbus SE received illegal state funding for jet jet development, which cost Boeing Co. sales.
The Final The ruling affirmed a 2016 finding that the EU had failed to eliminate unfair subsidies for two Airbus twin models, ending a long-running commercial case. It is expected that the International Court of Justice will decide later this year on a separate case in which the EU calls into question billions of US tax incentives for Boeing.
The process intensifies tensions between the US and Europe, two formerly cooperative trading partners who are already arguing over US President Donald Trump's steel and aluminum tariffs and his decision to withdraw from a nuclear agreement with Iran, and $ 40 billion at aircraft sales.
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The controversial financing for Airbus has cost US aircraft manufacturers "$ 10 billion in lost sales," US sales representative Robert Lighthizer said in a statement. "If the EU does not finally take measures to break the rules and violate US interests, the United States must take countermeasures against EU products."
The WTP decision confirmed France, Germany, Spain and the United Kingdom failed adequately to compensate for the market-distorting aid for the launch of Airbus' A380 superjumbo, infrastructure support and capital contributions, which wrongly benefited the aircraft manufacturer remove. The blockage exacerbated the problem with submarket credit for the aircraft manufacturer's A350 jet.
The funding hurt the sale of the Boeing 747 jumbo jet and 787 Dreamliner and limited exports to the EU, Australia, China, Korea, Singapore and the United Arab Emirates Emirates, the panel determined. The Board of Trade also confirmed an earlier finding that the EU subsidy did not adversely affect the market for single-aisle jet sales, the largest source of revenue for Boeing and Airbus
The size of US tariffs This is determined by a WTO arbitration award and is based on the annual damage to the US and Boeing losses that the US had previously estimated at $ 7-10 billion a year.
Airbus has said it will take steps to ensure that its aid complies with the decision, and assess any possible sanctions as low.
"Despite Boeting's rhetoric, it is clear that their position today is simply sound: they have half of the market and a full order book, they clearly have not been damaged by repayable loans from Airbus," said Tom Enders, Airbus CEO. in a statement.
Airbus shares have reduced previous earnings by as much as 1.8 percent immediately after the verdict was published. The stock fell 0.9 percent to 96.25 euros at the close in Paris. Boeing fell less than 1 percent to $ 342.09 at 12:37. in New York, recovering from losses recorded before the decision.
For more than a decade, the US and the EU have been arguing over various government efforts to help the Chicago-based Airbus Boeing and Toulouse spend billions of dollars in costs to design and produce commercial aircraft. Later this year, it is expected that a separate WTO compliance panel will decide on whether the US has complied with the terms of a Boeing directive adopted in 2012 to combat illegal US tax breaks.
The Commercial Court ruled in Boeing in September In another case brought by the EU, a previous finding was passed that state aid of $ 8.7 billion to Boeing for the production of the 777X in Washington a banned subsidy
– With support from Andrew Mayeda