Boeing WTO case: the EU gets formal green light to impose duties on U.S. imports
The Dispute Settlement Body of World Trade Organization (WTO) yesterday formally authorised the EU to take countermeasures against the United States. The EU can now increase its duties on U.S. exports worth up to $4 billion. Yesterday's decision follows the WTO panel announcement confirming EU retaliation rights in reaction to illegal subsidies granted to the U.S. aircraft maker, Boeing.
Executive Vice-President for an Economy that Works for People and Commissioner for Trade, Valdis Dombrovskis, yesterday said:
“Today's formal approval by the Dispute Settlement Body of the WTO confirms the EU's right to impose countermeasures for illegal subsidies to the American aircraft maker, Boeing. The European Commission is preparing the countermeasures, in close consultation with our Member States. As I have made clear all along, our preferred outcome is a negotiated settlement with the U.S. To that end, we continue to engage intensively with our American counterparts, and I am in regular contact with U.S. Trade Representative Robert E. Lighthizer. In the absence of a negotiated outcome, the EU will be ready to take action in line with the WTO ruling.”
The European Commission is currently finalising the process, involving EU Member States, to be ready to use its retaliation rights in case there is no prospect of bringing the dispute to a mutually beneficial solution in a near future.
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