EU paid Airbus billions in illegal subsidies, WTO rules

The World Trade Organization (WTO) has ruled that the European Union (EU) failed to comply with requests to end subsidies for Airbus.

The US Trade Representative (USTR) said the ruling in the dispute opens the way for placing tariffs on EU goods.

The USTR argued that European countries had given $22bn in state aid to Airbus to help launch its A380 and A350 jets, causing losses to US rival Boeing.

The European Commission said most of the disputed support ended in 2011.

It said it had "only a few" remaining things to do to be compliant and pledged "swift action" on those fronts.

What is the history of the dispute?
Tuesday's ruling in favour of the US, which brought the case on behalf of plane-maker Boeing, brings an end to a dispute which began in 2004 over $22bn (£16.3bn) in subsidised European financing for Airbus.

The WTO initially found in favour of the US in 2011. The US subsequently complained that the EU and certain member countries were not in compliance with the decision, prompting further wrangling between the two sides.

On Tuesday, the WTO dismissed an appeal by Airbus, saying the European plane maker had failed to fix the harm done to US rival Boeing.

Boeing chairman and chief executive Dennis Muilenburg said: "Today's final ruling sends a clear message: disregard for the rules and illegal subsidies are not tolerated."


source:www.bbc.com