Airbus Subsidy Still Contentious at WTO

The U.S. blocked the formation of a panel that would determine whether the European Union has complied in the Airbus subsidies case that began 14 years ago. The World Trade Organization's Dispute Settlement Body will consider the request (see 1808070016) again on Aug. 27, and the U.S. cannot block the second request.

The European Union said in May that it has either ended the subsidy programs benefiting Airbus that the World Trade Organization says are not in compliance, or taken steps to mitigate their effects on competing airplane manufacturers. The U.S. first brought a WTO challenge (see 1805150066) on the subsidies in 2004, but said in 2011 that it didn't believe the EU was complying with the ruling on its subsidies. It still holds that view, and has asked a WTO arbitrator to determine how much it can retaliate for the subsidies. The compliance panel would allow the EU to avoid arbitration at least until the panel's ruling is in, and perhaps entirely. A countersuit on the Washington state tax subsidies for Boeing is still making its way through the WTO appeals process (see 1706300035).

At the Aug. 15 meeting of the Dispute Settlement Body in Geneva, the U.S. said the EU's request for a compliance panel is a disservice to the settlement dispute system at the WTO, according to a summary of the meeting provided by a Geneva trade official. The U.S. says the four European countries involved in the subsidies "still have not provided even the most basic information about alleged amendments made to certain launch aid contracts," according to a Geneva trade official.