United States Wins Big at WTO on EU Aircraft Subsidies

By May 16, 2018General

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.

Linda Dempsey

Linda Dempsey

Linda Dempsey is the vice president of international economic affairs at the National Association of Manufacturers (NAM). In this capacity, Ms. Dempsey leads the NAM’s efforts to improve the global competitiveness of manufacturers in the United States by advocating intellectual property protection, increased export financing and the elimination of trade barriers as well as pushing for agreements and treaties to open up new export markets to create jobs. Ms. Dempsey is noted for her experience on a wide range of international trade and investment policy issues.
Linda Dempsey

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