As the Commission had suggested, the European Union has appealed against the World Trade Organisation (WTO) decision on its compliance in the Airbus dispute (see EUROPE 12381/16), it was reported from Geneva on Friday 6 December.
On 2 December, when the report on the case was published, the Commission had already reported that, in its view, the WTO panel had committed “serious legal errors”.
The judges of the multilateral organisation had found, in a report submitted on the same day, that the EU and four of its Member States (Germany, Spain, France and the United Kingdom) had failed to comply with their obligations. According to the judges, support for the European aircraft manufacturer Airbus, which was considered illegal in the dispute with the United States over the legality of the aid (DS316), has still not been cancelled. The Commission did not wish to comment on this call.
While the EU advocates a negotiated solution with Washington to jointly establish global disciplines on aeronautical subsidies, its calls have been in vain: the response of the US Trade Representative (USTR) to this report considered new retaliatory measures against European products – measures considered illegal by the EU this time.
Giving itself the means to act
But the blocking of the Appellate Body of the dispute settlement mechanism could, as early as 11 December next, slow down the EU’s momentum and prevent it from defending its interests.
The European Commission would therefore like to give itself the means to defend itself. According to one European source, an adapted version of its implementing regulation (No. 654/2014), which would provide it with the legal tools to act in an appeal situation, is expected from 11 December. It would allow it not only to suspend its concessions and obligations, but also to impose additional tariffs on countries that do not respect their WTO commitments.
To consult the 2014 implementing regulations: https://bit.ly/2DTAFlM (Original version in French by Hermine Donceel)