EU Failed to Cut Off Illegal Subsidies to Airbus, WTO Rules

The U.S. claims ‘sweeping victory’ in protracted trade dispute, but the battle appears far from over

The ruling moves the U.S. one step closer to being able to impose more than $5 billion in annual tariffs against goods and services from the European Union as soon as next year, according to U.S.

The WTO said in a 574-page report that the EU and some of its member states “failed to comply” with an earlier ruling to remove the subsidies or void their effect to Airbus. EU compliance efforts fell short, the WTO said.

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ENLARGE

An Airbus A350XWB, the company’s newest long-range jetliner, is shown in a 2014 demonstration flight. The WTO found Thursday that the plane’s development was bolstered by illegal subsidies from the EU. PHOTO: REUTERS

 To read the complete article, please visit wsj.com

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