On 24 July 2020, the governments of France and Spain agreed with Airbus SE to modify the terms of the Repayable Launch Investment granted by them for development of the A350 aircraft to reflect market conditions. Therefore, the European Union and the Members States concerned are now in full compliance with the rulings of the World Trade Organization (WTO) in the Airbus case.

In 2018 the WTO Appellate Body found that the Union and its Member States had not fully complied with the previous WTO rulings with regard to Repayable Launch Investment for the A350 and A380 programs. Hence, the WTO allowed the United States to take countermeasures against European exports worth up to 7.5 billion dollars. Airbus took action concerning the other challenged measures earlier and France’s and Spain’s agreement with the company address the last remaining measures condemned by the WTO.

The achievement removes any grounds for the United States to maintain its countermeasures on the Union’s exports. However, if the United States opts to maintain its duties on European exports or decides to increase tariffs or apply them to new products, the Union will act to exercise its own sanction rights, based on the relevant WTO authorizations, as soon as the level of countermeasures is established by the WTO in the Boeing case.

Esmeralda Dedej