EU gets WTO green light for tariffs on US exports over Boeing

Boeing

(GENEVA) – The WTO’s dispute settlement body gave formal authorisation Monday for the EU to increase duties on U.S. exports worth up to $4 billion, in retaliation for illegal subsidies granted to U.S. aircraft maker Boeing.

The European Commission says it is currently finalising the process, with the involvement of the EU Member States, to be ready to use its retaliation rights in case there is no prospect of bringing the dispute to a mutually beneficial solution in a near future.

The ruling was welcomed by the Commission which said the WTO Dispute Settlement Body confirmed the EU’s right to impose countermeasures for illegal subsidies to the American aircraft maker, Boeing. However the EU executive has made clear that its preferred outcome is a negotiated settlement with the U.S.

EC vice-president Valdis Dombrovskis said “we continue to engage intensively with our American counterparts. and I am in regular contact with U.S. Trade Representative Robert E. Lighthizer. In the absence of a negotiated outcome, the EU will be ready to take action in line with the WTO ruling.”

The Commission says it will however be ready to use its retaliation rights in case there is no prospect of bringing the dispute to a mutually beneficial solution in a near future.

WTO Appellate Body ruling on US subsidies to Boeing

Public consultation on preliminary list of products in the Boeing case

Preliminary list of products

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