European Union ignored removing Airbus subsidies: WTO ruled

Airbus A380

European Union ignored removing Airbus subsidies: WTO ruled

A final ruling by the World Trade Organization (WTO) that the European Union illegally helped Airbus with $22 billion in subsidies authorizes the United States to impose retaliatory tariffs to recover losses suffered by U.S. aircraft manufacturer Boeing, according to a press release by Boeing on Tuesday.

European Trade Commissioner Cecilia Malmstroem insisted that the ruling also rejected "the vast majority" of United States claims against it, while saying in a statement that the bloc "will now take swift action to ensure it is fully in line with the WTO's final decision in this case". An appellate panel for the global trade body affirmed a 2016 ruling that the European Union had failed to eliminate unfair funding for two Airbus models.

The two archrivals have been locked in a back-and-forth trade dispute over subsidies since 2006.

"Today's final ruling sends a clear message: Disregard for the rules and illegal subsidies are not tolerated", said Dennis Muilenburg, Boeing chairman, president and CEO.

However, the Geneva watchdog dismissed US claims that loans for Airbus's most popular models, the A320 and A330, were costing Boeing significant sales and in so doing narrowed the scope of one of the world's longest and costliest trade spats.

The WTO panel found that Airbus hasn't been in compliance with some of the trade body's rules since 2011.

He added, "Despite Boeing's rhetoric, it is clear that their position today is straightforward healthy: They have half the market and a full order book, they have clearly not been damaged by Airbus repayable loans". Boeing fell less than 1 percent to $342.10 at 11:43 a.m.in NY.

The trade court in September ruled in Boeing's favor in another case brought by the European Union, overturning an earlier finding that $8.7 billion in state aid to Boeing for making the 777X in Washington was a prohibited subsidy. The decision means the USA can now ask an arbitrator to determine how much it can retaliate against the European bloc for failing to comply - raising a new question about how much Washington may recover from the EU through retaliatory tariffs.

Scottish Parliament rejects UK's Brexit bill
Trellis Advisors LLC Cuts Position in Vanguard Total Stock Market ETF (VTI)