The World Trade Organization (WTO) today in its final decision found that the European Union (EU) has failed to honor multiple previous rulings and has provided more than $22 billion of illegal subsidies to European aircraft maker 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, Boeing said in a statement Tesday.
The ruling by the WTO Appellate Body is the final decision in this case, which was initiated in 2006. “Today's 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 statement said.
The authorized 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 airplanes. It is anticipated that U.S. tariffs will be authorized up to the amount of annual harm this market-distorting tactic is causing. Tariffs could be scheduled as early as 2019. This is expected to be the largest-ever WTO authorization of retaliatory tariffs.
Today’s ruling confirms the EU has failed to remedy the harm caused by these market-distorting actions. Ignoring the WTO hurts rules-based trade and stifles competition.
The U.S. government has complied with WTO rulings stemming from the two cases the EU brought against the United States. One case has already ended in favor of the United States, and in the other, the vast majority of the allegations the EU made against the United States and Boeing were dismissed.
Where there were narrow rulings against U.S. practices, they have been fully addressed to the WTO's satisfaction.
Just one finding against the United States now remains before the WTO, which concerns a Washington state tax measure. It is under appeal and should be decided later this year or in early 2019. Boeing believes that ruling will be reversed, but if not, Boeing has pledged to do whatever necessary to come into full compliance in the interest of upholding rules-based trade, which is essential to fairness and the future prosperity of the global aerospace industry.
Airbus has offered its C295 Maritime Patrol Aircraft (MPA) for the South Korean Navy's MPA requirement which already has Boeing P8 and Saab Swordfish in the race. In February, the Defense Acquisition Program Administration (DAPA) unveiled its plan to sign a deal with an overseas aircraft manufacturer to introduce next-generation maritime patrol aircraft by 2020
Boeing and Israeli company Assembrix Ltd signed a Memorandum of Agreement (MOA) on Monday that will enable Boeing to use Assembrix software to manage and protect intellectual property shared with vendors during design and manufacturing. "This agreement expands Boeing's ties to Israeli industry while helping companies like Assembrix expand their business," said David Ivry, president, Boeing Israel
Boeing has been awarded $14 million contract for the production of 266 fuse assemblies for US Air Force air launched missiles. Work is expected to be complete by May 2022, US department of defense said in a statement Thursday
Boeing, through its subsidiary Aviall, will help production of the Advanced High-Performance Reconnaissance Light Aircraft (AHRLAC), developed by South African Paramount Group in the US. Aviall also is joining the recently launched industry team Bronco Combat Systems to bring the Bronco II aircraft to the US market
Boeing has entered an agreement to acquire KLX, an aviation parts and services provider in an all-cash transaction for $63 per share, approximately $1 billion of net debt, totalling $4.25 billion
Airbus Helicopters has secured an additional order of one H225 helicopter from the Japan Coast Guard (JCG), bringing JCGs H225 fleet to ten units. JCG currently operates three AS332s and five H225s, both from the Super Puma family
Pakistan Commissions Largest Locally-built Warship
Chinese firm Tests BrahMos-rivaling Supersonic Cruise Missile
Saab to Develops Surface-Launched Version of Gungnir Anti-ship Missile
BAE Systems Demonstrates Software for US Military Cyber Security
Two Belgian F-16 Fighter Jets Destroyed in Accidental Cannon Fire
China Reveals Hong-20, New-gen Stealth Bomber Program
China to Unveil Apache Helicopter Rival at Zhuhai Air Show
Russian Future Semi-catamaran Aircraft Carrier gets New Design Concept
Russian fifth generation fighter aircraft (FGFA) Su-57 will for the first time perform flights during the ARMY 2018 event near...
The American-made Patriot and Russian S-400 Triumf air defense systems are currently hogging international orders despite their price tags running...
The Russian ministry of defense on Thursday published a series of videos showcasing the production, deployment and installation and testing...
The market for fighter jets in countries which are expected to have open competitions is estimated at US$50 billion to...
The Indian MoD's plan to purchase 110 fighter jets may be its costliest fighter jet buy ever with the entire...
Indias plans of integrating the MBDAs meteor missile on its LCA Tejas and Su-30MKI aircraft may not happen due to...