On October 2, 2019, The United States won the largest arbitration award in World Trade Organization history in its dispute with the European Union over illegal subsidies to Airbus. This follows four previous panel and appellate reports from 2011-2018 finding that EU subsidies to Airbus break WTO rules. This decision demonstrates that massive EU corporate welfare has cost American aerospace companies hundreds of billions of dollars in lost revenue over the nearly 15 years of litigation.
The tariffs will be applied to a range of imports from EU Member States, with the bulk of the tariffs being applied to imports from France, Germany, Spain, and the United Kingdom – the four countries responsible for the illegal subsidies. Although USTR has the authority to apply a 100 percent tariff on affected products, at this time the tariff increases will be limited to 10 percent on large civil aircraft and 25 percent on agricultural and other products. The U.S. has the authority to increase the tariffs at any time, or change the products affected. The articles covered by the additional tariffs vary from country to country. The only country subject to additional tariffs on textile articles is the United Kingdom.
Products of the United Kingdom described below are subject to additional import duties of 25 percent ad valorem.
|6110.12.10||Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of Kashmir goats, wholly of cashmere|
|6110.20.20||Sweaters, pullovers and similar articles, knitted or crocheted, of cotton, nesoi|
|6110.30.30||Sweaters, pullovers and similar articles, knitted or crocheted, of manmade fibers, nesoi|
|6202.99.15||Rec perf outwear, women's/girls' anoraks, wind-breakers & similar articles, not k/c, tex mats (not wool, cotton or mmf), cont < 70% by wt of silk|
|6202.99.80||Women's orgirls' anoraks, wind-breakers & similar articles, not k/c, of tex mats (not wool, cotton or mmf), cont < 70% by wt of silk|
|6203.11.60||Men's or boys' suits of wool, not knitted or crocheted, nesoi, of wool yarn with average fiber diameter of 18.5 micron or less|
|6203.11.90||Men's or boys' suits of wool or fine animal hair, not knitted or crocheted, nesoi|
|6203.19.30||Men's or boys' suits, of artificial fibers, nesoi, not knitted or crocheted|
|6203.19.90||Men's or boys' suits, of textile mats(except wool, cotton or mmf), containing under 70% by weight of silk or silk waste, not knit or croch|
|6208.21.00||Women's or girls' nightdresses and pajamas, not knitted or crocheted, of cotton|
|6211.12.40||Women's or girls' swimwear, of textile materials(except mmf), containing 70% or more by weight of silk or silk waste, not knit or crocheted|
|6211.12.80||Women's or girls' swimwear, of textile materials(except mmf), containing under 70% by weight of silk or silk waste, not knit or crocheted|
|6301.30.00||Blankets (other than electric blankets) and traveling rugs, of cotton|
|6301.90.00||Blankets and traveling rugs, nesoi|
|6302.21.50||Bed linen, not knit or crocheted, printed, of cotton, cont any embroidery, lace, braid, edging, trimming, piping or applique work, not napped|
|6302.21.90||Bed linen, not knit or croc, printed, of cotton, not cont any embroidery, lace, braid, edging, trimming, piping or applique work, not napped|
The effective date of the additional duties is October 18, 2019.
For the complete list of articles the U.S. will be imposing additional duties on CLICK HERE.
The award of $7.5 billion annually is by far the largest award in WTO history—nearly twice the largest previous award. The Arbitrator calculated this amount based on WTO findings that EU launch aid for Airbus is causing significant lost sales of Boeing large civil aircraft, as well as impeding exports of Boeing large aircraft to the EU, Australia, China, Korea, Singapore, and UAE markets. Under WTO rules, the Arbitrator’s decision is final and not subject to appeal.