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EU Fails to End Illegal Airbus Subsidies

A WTO panel has ruled that the EU has not complied with an order to end illegal subsidies for Airbus.

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AP Photo/Francois Mori, File

GENEVA (AP) — A World Trade Organization panel has ruled that the European Union has not complied with an order to end illegal subsidies for European plane maker Airbus that prompted the Trump administration to impose tariffs on nearly $7.5 billion worth of EU goods in October.

The European Union is nearly certain to appeal. A WTO compliance panel found that the EU had not taken sufficient steps to end the harm to Airbus rival Boeing.

Adding to the complexity: The WTO’s appellate body is set to become unable to hear new cases starting next week. Under WTO rules, it must have at least three members, and the terms of two of its three members are set to expire Dec. 11.

The U.S. has blocked appointments to the appellate body, alleging it has overstepped WTO rules.

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