WTO gives EU green light to impose US $ 3.4 billion in tariffs for illegal Boeing subsidies

The European Union has the green light from the World Trade Organization (WTO) to impose a tariff hit on the United States for an amount of 4,000 million dollars (about 3,400 million euros) for the illegal aid granted to the aeronautical manufacturer Boeing.

The Geneva-based body thus closes a cross dispute of more than three decades, after last year it authorized Washington to apply sanctions to European products for 7.5 billion dollars (6.9 billion euros) for aid to Airbus .

Brussels has tried, so far without success, an agreement for a friendly solution to the conflict in which both parties will renounce to tax their products more.

The EU had brought the granting of alleged illegal aid for the construction of the Model 777X to the WTO.

The arbitration body agreed with him and authorized him to apply tariffs to compensate for the damage, but the amount to which these sanctions could amount had yet to be decided.

By clearing this front, the EU can kill two birds with one stone: collect that grievance and respond to the arsenal of tariffs that the Donald Trump Administration announced a year ago on European products for the aid that Germany, France, the United Kingdom and Spain granted also illegally to Airbus.

The European Commission has since tried, in vain, to promote a de-escalation.

The good relations that former President Jean-Claude Juncker had with Donald Trump were not enough to change Washington's mind.

And neither has Ursula von der Leyen's new cabinet.

US Trade Representative Robert Lighthizer confirmed this summer the tariffs imposed despite calls from Brussels to park cross-sanctions and agree to a new global subsidy system.

Especially when both sides of the Atlantic are going through the worst economic crisis since World War II.

While the EU reached out to the US, it was also preparing possible retaliation.

The EU had asked the WTO to tax US products for $ 12 billion.

In fact, after the dispute resolution body gave him reason, he prepared a list with imported products that total 20,000 million euros.

These include agricultural and industrial goods, wines, alcoholic beverages (rum, vodka), video consoles, electronic games, and vehicles (helicopters and other types of aircraft).

Misgivings about Beijing, which continues to resist opening up its economy, and friction with the UK have made rebuilding transatlantic relations a priority for Brussels.

The new head of Commerce, Vice President Valdis Dombrovskis, again urged Washington to withdraw the sanctions imposed on European products.

The EU is closely following the result of the presidential elections next November, which could accelerate new times in relations between the two shores of the Atlantic.