The ongoing spat between the EU and U.S. over subsidies to and continued today with the Europeans filing a complaint with the World Trade Organization (WTO) claiming illegal support of Boeing remains intact despite U.S. assertions to the contrary.
The allegation comes a day after the U.S. sent a compliance report to the WTO stating that subsidies highlighted by the trade organization last year had ceased. At the same time, the U.S. Trade Representative’s (USTR) office and Boeing reiterated accusations made late last year that the EU maintains subsidies to Airbus despite a separate WTO ruling pointing to specific illegal payments to the European airframer.
EU Trade Commissioner Karel De Gucht, blasting the U.S. compliance report says, “The lack of information in the U.S. notification unfortunately facilitated a quick review.”
The U.S. has neither withdrawn its subsidies to Boeing nor corrected the adverse effects of these subsidies, the EU claims. “The U.S. leaves us with no other choice but to insist on proper compliance before the [WTO],” De Gucht says. “We are confident that this process will finally lead to a level playing field in the aircraft sector.”
With the EU’s claim, the WTO now is conducting compliance reviews on the withdrawal of subsidies for both Airbus and Boeing.