Published: Sun, October 18, 2020

USA offers truce in Airbus subsidy spat

USA offers truce in Airbus subsidy spat

This week the World Trade Organization allows the EU to respond to the charges imposed by Washington following a similar ruling last October, under which the United States won the right tariffs .5 7.5 billion EU goods, This affected aircraft parts and luxury goods based on the European Government's objections to the rival space team Airbus. 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.

- The skies have always been unfriendly between the USA and the European Union, with claims and counterclaims of unfair subsidies given to Airbus and Boeing, the world's two biggest airplane makers setting off a dispute that's lasted 16 years.

The Tuesday decision marks the consummation of a 16-year-long legal battle before the WTO.

Meanwhile, the EU-which has drawn up a list of American products that will face tariffs-will likely hold fire until after the US presidential election on November 3, according to three officials familiar with the bloc's thinking. 2 he made it clear that he sees doubling and says one has at least 50% for height. The European Union has long demanded government subsidies for the USA aircraft manufacturer Boeing It was unfair.

European Union officials released a proposed list of goods to be subject to tariffs in June 2019 for public comment, parallel to similar proceedings in the US.

USA tariffs on about $7.5 billion worth of EU goods over Airbus subsidies have already started to hit European goods.

That would assume a higher risk than Airbus partner nations - Britain, France, Germany and Spain - have traditionally priced into the loans and reflects a speculative type of investment.

One European source called the proposal "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. Both sides have urged negotiations while accusing the other of refusing to engage seriously.

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

The United States argues that cheap loans have a lasting benefit to Airbus by leaving billions on its books, which it can use to develop jets and offer lower prices than otherwise possible.

Although the United States would not benefit directly from increased repayments by Airbus to European states, USA sources say that Boeing would benefit indirectly if Airbus finances were purely market-based.

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