US gets the nod to act against Airbus

THE World Trade Organization formally authorised the United States yesterday to impose tariffs on up to US$7.5 billion of imports of EU goods after an arbitrator’s decision over subsidies to planemaker Airbus.

The WTO’s dispute settlement body, made up of representatives from its 164 members, cleared Washington to take countermeasures against the European Union and Airbusproducing countries Britain, France, Germany and Spain.

The authorization was a formality after a WTO arbitrator awarded a record right to retaliate over illegal subsidies this month. It would only have been denied if all WTO members present voted against. The meeting lasted less than 20 minutes.

US trade ambassador Dennis Shea told the meeting that Washington still preferred a negotiated solution.

“But that can only happen if the EU genuinely terminates the benefits to Airbus from current subsidies and ensures that subsidies to Airbus cannot be revived under another name or another mechanism,” he told the meeting.

The EU delegation told the meeting that it had “serious concerns” and that US tariff measures were short-sighted.

The WTO has found that both Airbus and its US rival Boeing received billions of dollars of illegal subsidies in a pair of cases that have run for 15 years. An adjudication in the Boeing case is expected early in 2020.

The US has said it will impose 10 percent tariffs on Airbus planes and 25 percent duties on a range of products, including French wine, Scottish whiskies and cheese from across the continent.

The EU’s top trade official said Europe would fight until the last moment to dissuade the US from imposing tariffs in retaliation for illegal EU subsidies to Airbus.

(Agencies)