[London / Brussels / Geneva 2nd Reuters]-The World Trade Organization (WTO) on the 2nd, over the conflict between the United States and the European Union (EU) over aircraft subsidies The EU subsidy against the US has illegally approved the US to impose import duties on European products worth $ 7.5 billion.
The US and Europe allege that the subsidies for Airbus and Boeing <BA.N> are unfair, and are preparing for mutual tariffs. Reuters reported last week that the WTO has approved a retaliatory tariff on the EU in the US over aircraft subsidies.
A subcommittee of three WTO arbitrators pointed out that the US suffered $ 7.5 billion in annual damage from the European government's subsidies for the Airbus ultra-large passenger aircraft A380. The US granted tariffs on European products worth 7.5 billion dollars, but exempted tariff charges on financial services.
In response, the European Commission insists that US trade sanctions are “myopic and unproductive”. Comments from US officials have not been obtained.
The WTO has already admitted that billions of dollars in illegal subsidies for Airbus and Boeing have been recognized in the Western confrontation over aircraft subsidies since 2004. The tariff scale will be determined.
According to two US officials, the US Trade Representative is expected to quickly narrow down the list of items worth $ 25 billion that are candidates for tariffs. The list includes Airbus aircraft itself, helicopters, wine, spirits, handbags and cheese.
Prior to the tariff charge, the WTO dispute resolution agency will need to formally adopt the arbitrator's report and the process is expected to take 10 to 4 weeks.
The next meeting of the dispute resolution agency is scheduled for October 28, but the US government can request a special meeting 10 days after the arbitrator's report is published. There is a possibility that final approval will be made on October 14th, which is the next business day 10 days after publication.