Brussels, 02/04/2012 (Agence Europe) - The US would like to verify compliance with EU aid to Airbus in the context of the WTO ruling on their 2004 complaint (DS 316).
The US is again attacking EU subsidies to the Airbus aircraft manufacturer. It considers that the EU member states involved have not stopped their illegal subsidies to the company - subsidies denounced by the WTO. On 30 March, US Trade Representative Ron Kirk called on the WTO to set up a special group on examining compliance and establishing whether the EU has taken the measures imposed by the WTO appeals decision in May 2011 (see EUROPE 10382). Aid for development of the most recent Airbus A350 model is being targeted.
At the beginning of December 2011, the European Commission sent a report outlining all compliance measures taken and also regretted the decision made by the US in this regard: “We regret that the US has chosen to take this step, since the EU notified its compliance with its WTO obligations in the package of steps taken at the end of 2011, and the US has yet to do the same in the Boeing case” said the European Commission's trade spokesman, John Clancy, speaking on a half of Karel De Gucht.
The US will officially present its request during a meeting of the WTO disputes body on 13 April. If the WTO rules that the contested programme has not been terminated, the EU could face trade sanctions that would affect its exports to the US. Washington may call for sanctions to be imposed worth between $7-10 billion. It may take the WTO almost a year to rule on this issue.
The US has until 23 December to comply with the WTO verdict against their subsidies paid to Boeing and which were criticised by the EU in a complaint in 2005 (DS 354). On 12 March last, the WTO confirmed in an appeals decision its verdict of March 2011 (see EUROPE 10572). (EH/transl.fl)