Brussels, 24/09/2012 (Agence Europe) - Washington has submitted its compliance action plan regarding its subsidies to US aircraft manufacturer Boeing, following the WTO ruling on the EU complaint.
Similarly to what the Commission did in December 2011, in response to the WTO verdict against European aid as part of the US complaint (DS 316), the US government provided the WTO and European Commission on Monday 24 September with details about the United States' compliance plan in response to the WTO's recommendations in the civil aircraft dispute with the European Union (EU) related to US government subsidies to Boeing (DS 353). On Monday, the United States Trade Representative provided assurances that it had fully complied with the decision demanding that it recover between US$3 and 4 billion in subsidies for R&D and aid deemed illegal by the WTO. The USTR also provided assurances that it has been working extensively over the last six months with all of the government entities affected by the March 23, 2012 ruling in this case, including NASA, the Department of Defense, the State of Washington, and the City of Wichita. Boeing is offering its full support to the actions the US government announced “to address the relatively small amounts of subsidy that the World Trade Organization identified as inconsistent with the rules”.
The EU may contest the compliance of US measures with WTO demands to end subsidies or get rid of their harmful effects. On Monday, the services of the Commissioner for trade, Karel De Gucht, explained that in the appeal last March, the WTO had confirmed its verdict condemning US subsidies as “illegal” to the Boeing aircraft manufacturer and said that the EU would “immediately review their compliance package to check whether the US have taken the necessary steps to end the subsidies and their adverse effects”.
At the beginning of April, the US contested the EU's compliance plan with the WTO decision on aid to Airbus (DS 316) (see EUROPE 10587). If the WTO deems that the contested European aid programme has not been withdrawn, the EU could be subject to trade retaliation measures affecting its exports to the US that are worth up to US$10 billion a year. (EH/trans.fl)