An Airbus A350 takes off at the aircraft builder’s headquarters in Colomiers near Toulouse, France, September 27, 2019. — Reuters pic
“In the absence of a settlement, the EU will be ready to fully avail itself of its own sanction rights,” EU Trade Commissioner Phil Hogan said. Trade groups are bracing for an escalation of the row in the autumn when the EU is expected to win WTO approval to hit back with its own tariffs over subsidies for Boeing.
In May, the United States declared itself in full compliance with WTO findings after Washington state abolished aerospace industry tax breaks that largely benefited Boeing.Although Airbus is not officially a party to the case – which pits the United States against the EU as well as Britain, France, Germany and Spain – today’s statement opens the door for negotiations to settle the dispute, a European source said.
“This is an interesting development but there is a lack of detail and no reference to remedying illegal subsidies for the A380,” a US source said. They are angry at being penalised for illegal support for planemakers just when their own industries are reeling from the coronavirus epidemic. The Scotch Whisky Association called for a settlement before tariffs caused “irreparable damage”.Airbus said US airlines had been hurt by tariffs on European jets. The US Distilled Spirits Council said drinks firms on both sides of the Atlantic “have suffered enough”.