The World Trade Organization (WTO) to authorize the European Union (EU) to apply tariff sanctions amounting to $ 4 billion against US products and services in the US aid dossier to Boeing.
The WTO’s decision is due to be officially announced on October 13, according to an informed source quoted by Bloomberg. It echoes the green light given last October by the WTO to the United States to impose tariffs on 7.5 billion dollars of imports from the EU due to subsidies granted to Airbus.
These sanctions are part of a legal battle between the European Union and the United States over public aid paid to their respective aircraft manufacturers and deemed illegal on both sides. Both sides, embroiled in the dispute for 16 years, have already been told green to European sanctions by WTO mediators.
However, EU taxes on products like Boeing planes – which will still have to be officially validated by the WTO – are unlikely to be imposed before the US presidential election, as Brussels does not want to add to the tensions of the election campaign.
According to European sources, the latest WTO ruling ignores some $ 4.2 billion in tariffs against the United States left out in a prior case, which would give the EU strike power of $ 8.2 billion in total.