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12/2, 6:23 PM (Source: TeleTrader)
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WTO: EU failed to end illegal Airbus subsidies

The World Trade Organization (WTO) said on Monday it decided to dismiss the European Union's claim that Airbus is not receiving subsidies anymore. The European countries have been giving loans to Airbus in the past and new reports from WTO showed that both Airbus A380 and A350 jetliners continue to be subsidized. Since previously there were plenty of claims from both sides regarding illegal aircraft subsidies, this move is just another in rising global trade tensions.

In Monday's ruling, a three-person panel dismissed the EU claims that after Airbus stops selling A380, it will no longer be perceived as a threat to Boeing's 747. WTO claims that, as long as the A380 is produced and delivered, it will be a direct threat to Boeing's sales. Airbus said it will end the production of the model in 2021. The European Commission said it is considering a probable appeal and will continue to seek an agreement on aircraft subsidies with the United States.

WTO previously ruled the EU was illegally subsidizing Airbus, which led the US to introduce tariffs on $7.5 billion worth of goods coming from the bloc.

Breaking the News / TF