Manufacturers scored a significant victory yesterday after the World Trade Organization (WTO) ruled that the European Union (EU) has been unfairly subsidizing European aircraft production.
The WTO found that the EU and EU countries failed to comply with a previous WTO ruling by continuing to provide subsidies years after they were told to stop. In doing so, the EU violated core parts of the WTO Agreement on Subsidies and Countervailing Measures, harming manufacturers in the United States, from Boeing to their thousands of suppliers and workers that depend on fair competition.
Full compliance with WTO rules is essential for creating a more level playing field so that manufacturers in the United States can compete and win fairly in the global economy. The United States brought this case under the WTO Dispute Settlement Mechanism (DSM). Since the DSM’s creation in 1995, the United States has brought more than 100 claims, winning or successfully settling 75 of the 79 cases that have been concluded. These involved many of our major trading partners, including the EU, Canada, Mexico, Brazil and India.
The United States has been among the world’s most active users of WTO cases to defend our interests, bringing about 20 percent of the total requests for consultation made overall in the WTO. These cases are critical for the competitiveness of manufacturers in the United States.
While this decision is a positive reflection of the international rules system, it took more than a decade to reach. Manufacturers strongly support full enforcement of global trade rules but hope to see much more timely resolutions going forward.
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