Daily Management Review

EU will respond to US subsidies for Boeing


The European Union is getting ready to respond to US subsidies for Boeing aircraft manufacturing corporation, Reuters reported, citing a source in the European Commission.

This is happening against the background of the US preparation for a new offensive in a trade war. This move was caused by a recent conclusion of the WTO that Brussels allocates subsidies to the aircraft manufacturing concern Airbus.

Washington is considering a possibility of introducing duties on European goods. For now, it is about civilian helicopters and aircraft from EU countries, including directly Airbus airliners, as well as their components. In addition, the list includes products, like olive oil and cheeses, as well as carpets and many other products.

In a statement, US Trade Representative Robert Lighthizer points out that introduction of additional duties is aimed at recovering the annual damage of $ 11 billion, which is borne by the US and resulted from EU subsidies to Airbus. The duties are planned to be retained until Brussels refuses to support the aircraft concern.

A source at the European Commission told Reuters that the level of countermeasures offered by the United States is "greatly exaggerated." The interviewee noted that the scale of the response can only be determined by the arbitrator of the World Trade Organization.

"In a parallel dispute about Boeing, the EU’s EU response law is also nearing, and the EU will ask the WTO-appointed arbitrator to determine the EU’s right to respond,” said the EC source, adding that the commission is preparing to take action after the arbitrator’s decision.

source: reuters.com