Geneva (AFP) – The United States has asked the WTO to determine the amount it can impose in sanctions against the European Union for failing to comply with a ruling to remove subsidies for aircraft maker Airbus, a World Trade Organization official said Friday.
The United States submitted last week its request that a WTO arbitrator begin determining the amount, the official said, but a decision is not expected this year given the complexity of the case.
In May, the the appellate division of the WTO’s Dispute Settlement Body ruled the EU had failed to remove illegal Airbus subsidies, handing a major victory to the United States and its national aviation giant Boeing in a multi-faceted dispute that has raged for 14 years.
Boeing has said that the ruling opens the way for the US to apply sanctions worth several billion dollars per year.
The EU has appealed for a new review, estimating that its aid for Airbus now meets WTO rules.
Following a truce in the 1990s, the EU and US have since 2004 been slugging it out at the WTO on behalf of Airbus and Boeing, which have both benefitted from state support to develop aircraft.
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