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23-Sep-2016 1:02 PM

UNWTO finds for one of three US complaints against Airbus subsidies supplied by the EU

UNWTO issued (22-Sep-2016) the following summary of its key findings concerning the US complaint over the alleged failure on the part of the EU and certain member states to implement the recommendations and rulings concerning subsidies supplied to Airbus for large civil aircraft programmes. The UNWTO found that:

  • US failed to demonstrate that the French, German, Spanish and UK A380 and A350XWB launch aid/member state financing measures constituted prohibited export subsidies within the Subsidies and Countervailing Measures (SCM) agreement;
  • US failed to demonstrate that the French, German, Spanish and UK A350XWB launch aid/member state financing measures constituted prohibited import substitution subsidies within the SCM agreement;
  • US demonstrated that the EU and certain member States failed to comply with the adopted Dispute Settlement Body (DSB) recommendations and rulings and, in particular, the obligation “to take appropriate steps to remove the adverse effects or … withdraw the subsidy”, to the extent that the effects of the challenged launch aid/member state financing subsidies and the non-launch aid/member state financing subsidies continue to be, respectively, a “genuine and substantial” and “genuine”, cause of serious prejudice to the US interests in the post-implementation period.

The UNWTO compliance panel therefore concluded that the EU and certain member States failed to implement the recommendations and rulings of the DSB to bring its measures into conformity with its obligations under the SCM Agreement, and to this extent, that the adopted recommendations and rulings remained operative. [more - original PR]

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