EU requests WTO consultations on extension of State of Washington
Dec 19 2014 On 19 December 2014
Update: The WTO Boeing-Airbus dispute
Jan 16 2008 The second panel hearing in the EU's case against US subsidies to Boeing (WTO case. DS353) will take place on 16-17 January 2008.
WTO EU/US Trade Dispute Concerning Alleged Subsidies to the
Mar 1 2019 March 2019. WTO EU/US Trade Dispute Concerning Alleged Subsidies to the Large Civil Aircraft Manufacturers Airbus and. Boeing. 1.
Boeing-Airbus Subsidy Dispute: Recent Developments
Dec 2 2019 collectively referred to as the EU). The action
Joint statement: Airbus-Boeing tariffs suspension
Joint Statement of the European Union and the United States on the Large Civil Aircraft WTO. Disputes (05/03/2021). The European Union and the United States
An Examination of the Effectiveness of the WTO Dispute Resolution
This subsidy battle between Airbus and Boeing could be the most expensive case ever to come before the WTO. As Peter. Mandelson the European trade
EUROPEAN COMMUNITIES AND CERTAIN MEMBER STATES
Sep 22 2016 6.2 THE EUROPEAN UNION'S COMPLIANCE COMMUNICATION OF 1 DECEMBER 2011 . ... compete against Boeing (and
EU-US dispute over civil aircraft subsidies
Nov 9 2020 (WTO) case over State aid given to Airbus. The European Union filed a parallel case against US subsidies to. Boeing.
Subsidies in Civil Aircraft Manufacturing: The World Trade
Oct 6 2004 nities3 and DS3534 for the EU's counter-complaint against the USA – have dragged on for ... in fact
WORLD TRADE ORGANIZATION
May 18 2011 Displacement of Boeing LCA from the European Communities ... ANNEX III Procedural Ruling and Additional Procedures to Protect Sensitive.
Lithuania won’t back down over Taiwan says minister in Australia as ro
Boeing WTO case: The EU puts in place countermeasures against U S exports Brussels 9 November 2020 The European Commission's regulation increasing tariffs on U S exports into the EU worth $4 billion will be published in the Official Journal of the EU The countermeasures have been agreed by EU
Boeing subsidy case: World Trade Organization confirms EU
Boeing subsidy case: World Trade Organization confirms EU right to retaliate against $4 billion of U S imports Brussels 13 October 2020 Today the World Trade Organization (WTO) allowed the EU to raise tariffs up to $4 billion worth of imports from the U S as a countermeasure for illegal subsides to the American aircraft maker Boeing
What is the EU's WTO case against China?
- Last month, the EU launched a World Trade Organization (WTO) case against China for its alleged economic coercion of Lithuania by refusing to clear Lithuanian goods through customs.
How did the WTO's anti-Boeing decision affect Airbus?
- The world body also found that the loans, which were repayable on delivery, amounted to illegal assistance. Last year, the WTO handed the EU a victory in its counter case, saying America's favorable contract terms and tax breaks to Boeing had hurt Airbus sales. Interestingly, both the US and the EU claimed victory on hearing the decisions.
Did EU subsidies to Airbus break WTO rules?
- The case dates back to 2004 and, as the U.S. trade representative press release noted, the WTO decision this week “follows four previous panel and appellate reports from 2011-2018 finding that EU subsidies to Airbus break WTO rules.”
What is the WTO case law project?
- The project, started in 2001 with financial support from the American Law Institute, brings together lawyers and economists who jointly assess the previous years WTO Case Law at an annual conference hosted by the Global Governance Programme, EUI. Final versions of case law papers are published in an annual special issue of The World Trade Review.
AT A GLANCE
EPRS | European Parliamentary Research Service
Author: Jana Titievskaia; Graphic: Samy Chahri, Members' Research ServicePE 659.347 - November 2020
ENEU-US dispute over civil aircraft subsidies
Since the
1980s onset of intensified sales competition between American and European civil aircraft
manufacturers, aircraft trade has been a point of contention in transatlantic trade. Between 1992 and 2004, the
Bilateral Agreement on Trade in Large Civil Aircraft regulated the permitted levels of support to aircraft
manufacturers. In 2003, Europe's Airbus sold more large civil aircraft than United States-owned Boeing for the
first time. The following year, the USA renounced the agreement and launched a World Trade Organization
(WTO) case over State aid given to Airbus. The European Union filed a parallel case against US subsidies to
Boeing. Following a long-standing dispute, the WTO authorised US imposition of countermeasures worth nearly
US$7.5 billion in 2019. In October 2020, in a mirror case brought by the EU against the US subsidies to Boeing,
the EU was authorised to impose retaliatory tariffs. On 9 November, the EU imposed these tariffs, on US$4billion
worth of US aircraft, food and drink production. In addition to the tariffs, the aviation industry has been hard-hit
by the coronavirus crisis. Joe Biden's success in the recent Presidential election strengthen hopes for a
negotiated solution to the dispute. US tariffs over Airbus subsidisation In October 2004, competition between aircraft manufacturers led to a US complaint that the European Communities and certain Member States (France, Germany, Spain and the United Kingdom (UK)) were breaking the WTO Subsidies and Countervailing Measures Agreement. The US administration cited e.g.direct grants, government-provided goods and services, and loans on preferential terms. In 2011, the WTO
Appellate Body
ruled that certain subsidies caused serious prejudice to US interests. The EU soonannounced it had brought subsidies into conformity with WTO obligations. However, the US contested this
and requested the establishment of a compliance panel, leading to a further appeal.In 2019, the WTO authorised the USA to take countermeasures covering a maximum of nearly US$7.5 billion
of imports from the EU. As a result, the USA applied a 15 % duty on new aircraft, in spite of France, Spainand Airbus agreeing in July 2020 to fix remaining inconsistencies in an effort to bring the EU into full
compliance with the WTO rulings. In addition, the USA applied 25 % duties on a selection of over a hundred
of non-aircraft European goods, in particular food (e.g. mandarin oranges, pork), dairy products (e.g.
yoghurt, cheeses), wine (from France, Germany, Spain and the UK), and spirits (e.g. single-malt Irish and
Scotch whiskies). In
August 2020, the USA slightly reviewed these countermeasures, e.g. removing sweet biscuits from the UK and cheese from Greece, while adding jam from France and Germany.
EU tariffs over Boeing subsidisation
In October 2004, the EU requested a consultation with the USA over subsidies to large civil aircraft manufacturers, in particular Boeing. The EU complained , inter alia, of state and local subsidies, tax credits, and government contracts. In October 2020, the WTO published a decision by the arbitrator on EU retaliation over WTO non-compliant subsidisation of Boeing, allowing the EU to impose tariffs onnearly US$4 billion worth of US goods per year. Commissioner for Trade Valdis Dombrovskis has stated repeatedly
that the EU would prefer a negotiated solution. The German Minister of Economy Peter Altmaier was infavour of a delay or avoiding the imposition of the tariffs, in particular due to the difficult economic situation
in the context of the coronavirus pandemic. The French Minister of EconomyBruno LeMaire underlined the
need for EU imposition of tariffs in the absence of a negotiated solution with the USA.On 9 November 2020, after the US elections, the European Commission imposed tariffs on a selection of US$4 billion worth of goods, drawn up following a public consultation. The tariffs reflect the US
countermeasures and consist of a 15 % duty on US aircraft and 25 % duties on agricultural and industrial products. Commission Vice-President Dombrovskis has indicated that if the US removes the tariffs with immediate effect, the EU will also do so. The United States Trade Representative (USTR) expressed disappointment over EU countermeasures and stated that the US is seeking to negotiate with the EU. TheNovember 2020 election result increased hopes that the conflict can be resolved. While President Trump
EPRS EU-US dispute over civil aircraft subsidies
This document is prepared for, and addressed to, the Members and staff of the European Parliament as background material to assist them in their
parliamentary work. The content of the document is the sole responsibility of its author(s) and any opinions expressed herein should not be taken
to represent an official position of the Parliament. Reproduction and translation for non -commercial purposes are authorised, provided the sourceis acknowledged and the European Parliament is given prior notice and sent a copy. © European Union, 2020.
eprs@ep.europa.eu (contact) http://www.eprs.ep.parl.union.eu (intranet) http://www.europarl.europa.eu/thinktank (internet) http://epthinktank.eu (blog)
was strongly in favour of escalating tariffs in the case of EU retaliation, Joe Biden has indicated his
commitment to revitalising the transatlantic trade partnership.European Parliament position
In November 2019, the Parliament adopted a resolution calling for a unified EU response to the tariffs, and
swift support for agriculture and food sectors. The International Trade Committee (INTA) called for a
negotiated solution and condemned the US blockage of nominations to the Appellate Body, which jeopardises arbitration in the multilateral trading system.International trade in large aircraft
In 2018,
the EU exported 963 large planes worth €47.7 billion, of which the US accounted for 18 %, or about
€8.6billion. China was the largest destination for EU plane exports, accounting for one fifth of the EU total.
Apart from the USA and China, important export destinations for EU planes in 2018 were India, Norway,
Russia, Mexico, Japan and Saudi Arabia. A handful of EU Member States accounted for the vast majority oflarge plane exports in 2018: France (35 %), Germany (26 %), Ireland (17 %) and the United Kingdom (14 %).
Germany is also a major
aircraft part supplier to the USA. In terms of imports into the EU, the USA isoverwhelmingly the main origin of large planes (62 %), followed by Brazil and Canada. Trade has been hard-
hit by the coronavirus pandemic in 2020. In January-September 2020, Airbus delivered 341 planes (down
from 571 in the same period of 2019) and Boeing delivered 98 planes (down from 204).Figure 1:
EU trade in large aircraft (weight > 15 000 kg), 2019Source: Eurostat dataset.
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