For the United States, the dispute over support for the aircraft manufacturer Airbus provided an opportunity for the European Union to demonstrate the relevance of the World Trade Organization's dispute settlement system. However, rather than bringing its subsidies into line with multilateral trade rules, it has identified only two options: the solution negotiated with the United States on the Airbus and Boeing disputes or raising tariffs.
“The European Union is placing itself above the rules of the WTO, an institution that it is vehemently defending”, an American official told a few journalists on Friday 20 September, even though the EU and Washington have condemned Beijing for its policy of supporting its industries.
Some may see a missed European opportunity on the other side of the Atlantic to demonstrate the effectiveness of WTO rules.
Pending sanctions
The prospect of a negotiated solution that seems to have been ruled out (see EUROPE 12328/15), at least for the coming months, now raises the question of the timetable leading to the application by Washington of tariff sanctions on a range of European imports (see EUROPE 12302/24).
The estimate of the value of the damage suffered by the US industry – and, therefore, the amount of European imports that may be subject to tariffs – should be known as soon as the WTO arbitrator's report is made public, the week of 30 September.
If the United States so requests, the WTO arbitrator could meet in extraordinary session approximately 10 days later – i.e. no earlier than 10 October – to validate this report (otherwise, the next regular meeting of the Dispute Settlement Body would take place on 28 October).
It will then only take Washington – which will have adjusted its list of countermeasures in the meantime – a few days to impose these new trade sanctions. (Original version in French by Hermine Donceel)