Boeing-Airbus Subsidy Dispute: Recent Developments [Updated February 16, 2021]   [open pdf - 478KB]

From the Document: "On October 18, 2019, the United States imposed additional tariffs on $7.5 billion worth of U.S. imports from the European Union and the United Kingdom (UK) (hereinafter collectively referred to as the EU). The action, authorized by World Trade Organization (WTO) dispute settlement procedures, followed an investigation by the Office of the United States Trade Representative (USTR), under 'Section 301' (Title III of the Trade Act of 1974, 19 U.S.C. §§2411- 2420). The USTR determined that the EU had denied U.S. rights under WTO agreements. Specifically, the USTR concluded that the EU and certain current member states and the UK had not complied with a WTO Dispute Settlement Body (DSB) ruling recommending the withdrawal of WTO-inconsistent subsidies on the manufacture of large civil aircraft. In 2011, the dispute settlement (DS) panel confirmed that these subsidies breached the EU's WTO obligations under the 1994 General Agreement on Tariffs and Trade (GATT) and the Agreement on Subsidies and Countervailing Measures (SCM Agreement). The authorization to take countermeasures against the EU--the largest amount in the WTO's history--came after nearly 15 years of litigation at the WTO."

Report Number:
CRS In Focus, IF11364
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
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