PARIS/BRUSSELS (Reuters) – The World Trade Organization on Monday rejected European Union claims that it no longer provides subsidies to planemaker Airbus (AIR.PA), underscoring tariffs recently imposed by the United States on European goods.
Christian Scherer, Airbus Chief Commercial Officer, speaks during a news conference for the delivery of the first Fiji Airways A350 XWB airliner at the aircraft builder’s headquarters of Airbus in Colomiers near Toulouse, France, November 15, 2019. REUTERS/Regis Duvignau
A new compliance report from the Geneva trade watchdog found that the Airbus A380 and A350 jetliners continue to be subsidized as a result of past European government loans.
It is the latest move in a record transatlantic trade dispute involving mutual claims of illegal aircraft subsidies, coming to a head at a time of rising global trade tensions.
The United States was in October awarded the right to impose tariffs on $7.5 billion of annual EU imports in the case against Airbus. It went ahead with partial tariffs on most Airbus jets and products from cheese to olives and single-malt whisky.
A decision on retaliation rights for the EU in a parallel case on aid for Boeing (BA.N) is due next year..
In Monday’s finding, a three-person panel rejected EU claims that a recent decision by Airbus to stop producing the slow-selling A380 meant the giant airliner could no longer be seen as a threat to Boeing, whose competing 747 is also out of fashion.
While the WTO no longer faulted Airbus for causing lost sales to Boeing with the A380, which is no longer marketed, it