Economics
EU Risks Billions in Sanctions as WTO Faults Airbus Support
- Europe’s aid to A380, A350 found to violate commercial rules
- Trade body still considering cases that challenge Boeing aid
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The European Union failed to eliminate subsidies to planemaker Airbus Group SE that were previously found to violate trade rules, the World Trade Organization said in a ruling that opens the door to billions of dollars in sanctions against Brussels.
The finding by a WTO compliance panel Thursday strikes a blow to the EU in a long-running dispute with the U.S. over government subsidies to the world’s two largest aircraft manufacturers, Airbus and Boeing Co. The U.S. had said it would seek $10 billion in sanctions if the EU didn’t remedy illegal financing, which the trade body found in a 2011 ruling had cost Boeing plane sales and market share.