World Trade Organization Rules That European Union Can Apply Tariffs on $4 Billion in US Goods

AP News  |

Image source: World Trade Organization

GENEVA (AP) — World Trade Organization arbitrators said Tuesday that the European Union can sanction up to $4 billion in U.S. goods over Washington’s illegal support for plane maker Boeing.

The ruling, which could inflame Trump administration criticism of the Geneva-based trade body, amounts to one of the largest penalties handed down by the WTO. It comes a year after another ruling authorized billions in penalties against the European Union over support for Boeing rival Airbus.

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The decision, which is final and cannot be appealed, dates back to 2006 and is part of a string of long-running disputes between the two plane-making giants at the Geneva trade body.

The arbitrators were tasked with setting a dollar value in sanctions such as tariffs that the EU could impose a year after the WTO’s appellate body found that Boeing had received at least $5 billion in subsidies that were prohibited under international trade rules.

The United States had argued that the illegal support merited no more than $412 million in penalties, while the EU had countered that they deserved some $8 billion. The award in essence was 10 times more than what the U.S. had claimed, and half that the EU wanted.

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Source: AP News

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