THE World Trade Organisation (WTO) has ruled that the European Union has failed to cease providing US$22 billion in illegal subsidies to Airbus.
After examining this case for more than a
decade, the WTO has determined the EU must end its unfair business
practices and remedy the ongoing harm caused by the illegal subsidies.
This landmark ruling by the WTO Appellate Body is the final decision in this case, which was initiated in 2006.
The decision ends the dispute and clears the way for the United States
Trade Representative (USTR) to seek remedies in the form of tariffs
against European imports to the United States.
The authorised tariffs are likely to total billions in duties per year,
unless and until Airbus addresses the illegal subsidies it received from
European governments for its most recently launched aircraft.