WTO’s latest ruling that the EU has not eliminated the negative impact of subsidies on Airbus on Boeing

December 3 (UPI) — The World Trade Organization ruled on Monday that the European Union had not completely eliminated the negative impact of its subsidies to Airbus on Boeing. Airbus A380 and A350 jets continue to be subsidised by previous European government loans, according to a new compliance report by the Geneva trade watchdog.

WTO's latest ruling that the EU has not eliminated the negative impact of subsidies on Airbus on Boeing

It is the latest development in a record transatlantic dispute.

It was previously reported that the WTO’s dispute settlement body formally authorized the US to impose tariffs on $7.5bn worth of PRODUCTs imported into the US after the WTO ruled that the EU was subsidizing Airbus.

In Monday’s ruling, a three-judge panel at the WTO rejected the European Union’s argument that Airbus’s recent decision to stop production of its slow-selling A380 meant the jumbo was no longer seen as a threat to Boeing, which is outdated. Airbus began developing superjumbo jets in the 1990s, competing with the Boeing 747, which was the most passenger at the time.

Although the WTO has determined that the A380, which Airbus no longer sells, no longer causes sales losses to Boeing, it has ruled that the superjumbo will continue to damage Boeing’s market share as long as the A380 is still in production and delivery.

Airbus plans to stop production of the A380 by mid-2021.

The WTO ruling appeared to reinforce the findings of the A350, saying it hurt boeing’s cost sales and its market share in the busy twin-engine long-haul aircraft market.

The European Commission said it had taken note of the report, adding that there were serious legal errors.

The U.S. Trade Representative had no immediate comment.

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