15:14 GMT +320 September 2019
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    US Plan to Tax EU Goods Over Aircraft Subsidies Have No 'Legal Basis' - Airbus

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    MOSCOW (Sputnik) - A US plan to introduce tariffs over some EU products because of the bloc's subsidies to Airbus has no "legal basis," and US damages estimate is "largely exaggerated," the European aircraft maker said Tuesday.

    "We don’t see any legal basis for this. Airbus has taken the necessary measures to comply with the relatively minor elements that remained following [World trade Organization] WTO report of May 2018 (6% out of all Boeing’s claims) regarding Airbus subsidies. The amount is largely exaggerated and in any case will be defined by the WTO and not the US. By contrast, the ruling only last week shows no willingness at all on the Boeing side to comply and confirms they are clearly in contravention with WTO rules," the statement, quoted on Twitter by Executive Vice President for Communications at the company Rainer Ohler, said.

    READ MORE: France Warns Europe and US Cannot Allow Trade Conflict Over Airbus Subsidies

    Airbus went on to add that the adoption of the latest WTO report would allow the bloc to consider "even greater countermeasures."

    "All this is leading to unnecessary trade tensions and shows the only reasonable solution in this long trade dispute is a settlement which is something we have said since the beginning," the company said.

    The Office of the US Trade Representative (USTR) said Monday it was launching a process to decide which EU products to tax until the subsidies are removed. The USTR estimated the damage from the subsidies at $11 billion each year.

    The USTR released a list of products which might face additional duties. It includes several types of aircraft produced in France, Germany, Spain or the United Kingdom; various foods, including yogurts, fish steaks, wines and cheeses as well as clothes, linen and a large number of other products produced in any EU member state.

    In late March, the WTO ruled that most US subsidies to US aircraft maker Boeing were lawful, but found fault with a special tax program benefiting Boeing in the state of Washington.


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    tax, Airbus, World Trade Organization (WTO), European Union, United States
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