Office of the US Trade Representative comments on WTO ruling on Airbus subsidies

Office of the United States Trade Representative stated (22-Sep-2016) the Obama Administration has achieved an "important victory" in its World Trade Organization (WTO) dispute with the European Union and four of its member States regarding subsidies to Airbus. In the largest trade ruling in WTO history, the compliance panel confirmed the EU did not come into compliance with respect to the subsidies previously found, and it further breached WTO rules by granting more than USD4 billion in new subsidised financing for the A350 XWB. In total, the panel found that there have been nearly USD22 billion in subsidised financing from the EU and Germany, France, the UK and Spain. US Trade Representative Michael Froman stated: "This report is a sweeping victory for the United States and its aerospace workers... We have long maintained that EU aircraft subsidies have cost American companies tens of billions of dollars in lost revenue, which this report clearly proves... We expect the EU, Germany, France, the United Kingdom, and Spain - some of our closest trading partners - to respect WTO rules. We call on them to end subsidised financing of Airbus immediately." The compliance panel found that since 2006, subsidies to the A320 family of aircraft resulted in the displacement or impedance of Boeing 737s in the EU, Australia, China, and India markets, as well as lost sales of 271 Boeing 737s. In the twin-aisle market, the panel found that the subsidies benefitting the A330, A340, and A350 XWB caused displacement or impedance of Boeing aircraft in the EU, China, Korea, and Singapore markets, as well as lost sales of 50 aircraft. When it came to the largest aircraft, the panel found that subsidies benefitting the A380 caused displacement or impedance of 747s in the EU, Australia, China, Korea, Singapore, and UAE markets, as well as lost sales of 54 Boeing aircraft. [more - original PR]