WTO ruling on Airbus may spiral trade tensions between U.S. and Europe
Category: #world  By Saif Ali Bepari  Date: 2018-05-17
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WTO ruling on Airbus may spiral trade tensions between U.S. and Europe

The World Trade Organization has apparently declared that the European Union had persisted with unlawful subsidies to aeronautics behemoth Airbus. As per reliable sources, the latest ruling has prompted the United States to threaten trade sanctions against European products in the first of two crucial airliner subsidy verdicts due this year.

The latest ruling comes in the backdrop of Washington’s decision to exit the Iran nuclear deal which has impacted numerous European firms and the mounting trade tensions over U.S. steel and aluminum tariffs.

Speaking on the verdict declared by the World Trade Organization, the U.S. Trade Representative, Robert Lighthizer was quoted stating that the United States would impose countermeasures on European products unless the European Union stops harming the interests of the nation. He further stated that it is long due for the illegal subsidies extended to major aircraft manufacturers by the European Union to be halted.

Reportedly, the appeals body of WTO commented that the European Union has failed to eliminate subsidized development loans by various governments to Europe’s newest long-haul jet, the A350, and the world’s largest airliner, the A380, which resulted in massive losses for the American aerospace giant Boeing.

However, the global trade watchdog dismissed the claims of the U.S. that loans for A330 and A320, the most popular models of Airbus, cost significant sales revenue for Boeing and further restricted the scope of one of the world’s costliest and longest trade rows.

The European Commission released a statement in which it noted that most of the subsidies faulted by the WTO in the earlier rounds of the 14-year-old spat had already elapsed in 2011 and the U.S. has in fact lost most of its claims. However, the Commission has further stated that it plans to take swift action to align with the latest recommendations of the WTO.



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Saif Ali Bepari

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Saif Ali Bepari

Saif Ali Bepari currently works a content writer for Market Size Forecasters, Algosonline, and numerous other platforms. A Computer Science graduate who has a zest for writing over coding, he has previously dabbled into technical and creative writing. He now pens down...

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