US offers truce in Airbus subsidy spat

Pic EURATEX

Its significant ruling authorised Europe the ability to impose a total of $4 billion in tariffs, after an American decision to start charging tariffs worth a reported sum of $7 billion on European Union goods in relation to state support having been given to Boeing's commercial rival, Airbus. Last year, the United States received approval to impose tariffs totaling up to US$7.5 billion annually on goods from Europe. 2 he made it clear that he sees doubling and says one has at least 50% for height. Washington could raise those import taxes to 100%, which for many European products would effectively block their entry into the US marketplace.

The loans stand at the centre of a 16-year-old dispute that has bedevilled trade relations and spread to industries from luxury goods to agriculture as the two sides seek to punish aircraft subsidies with tariffs.

"While trade tensions between U.S. and European Union are complex, with serious issues on both sides, punitive tariffs cause irreparable harm to companies of all sizes and weaken their entire supply chains, at a time when growth and job creation are most needed", it said.

US Trade Representative Robert Lighthizer said on Tuesday the US would "intensify" talks to find a resolution to the longstanding dispute.

But one Brussels insider described the USA proposal as "insulting" and said it could accelerate the tariff war.

Lighthizer previously said he's seeking two things: a pledge from Europe to end its aircraft subsidies and for Airbus to repay the subsidies it received from France, Germany, Spain and the United Kingdom.


The WTO determined that the amount was "commensurate with the degree and nature of the adverse effects determined to exist" from U.S. support for Boeing considered to be in violation of worldwide trade rules, according to the 121-page arbitrator's report. Both sides have urged negotiations while accusing the other of refusing to engage seriously.

Washington argues that merely addressing future types of support would fail to resolve ongoing harm to Boeing caused by the presence on the Airbus balance sheet of past loans that it can still use to develop jets and offer unfairly low prices.

Jamieson Greer, former chief of staff to U.S. trade chief Robert Lighthizer, said any deal must involve some form of subsidy payback by Airbus.

Following the publication of the WTO report on the Boeing dispute earlier this week, 13 European associations representing sectors threatened or hit by USA tariffs as part of the Airbus dispute have urgently called on the European Unionand the United States to de-escalate the disputes, work on a negotiated solution and stop targeting unrelated sectors.

Airbus says the disputed loan system favours taxpayers because loan repayments on successful planes such as the A320 far outweigh amounts written off on jets that failed to reach sales targets.

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