Airbus, a European plane maker is going to take the last step to end litigation of 16 years at the World Trade Organization (WTO) with the United States over subsidies.
The company said “After 16 years of litigation at the WTO, this is the final step to stop the long-standing dispute and removes any justification for US tariffs” The manufacturer mentioned that the system of financial support from France and Spain that the WTO had deemed illegal and unfair to the rival Boeing will come to an end. The case was used as justification to slap tariffs on 7.5 billion worth of European exports by the Trump administration.
Airbus planes, a range of typical European exports, from gouda cheese to single malt whiskey are covered under the US tariffs. The Airbus case centers on a so-called launch aid from European countries that WTO Judges ruled had impeded sales for aircraft from Boeing in the twin-aisle and very large aircraft markets. On Friday Airbus agreed to make changes to the system of financial support. The official of WTO mentioned that the trade body had no conversation from the European Union regarding this matter and decline to comment further.