PARIS – The World Trade Organisation (WTO) is set to approve European Union sanctions worth around US$4 billion (RM16.6 billion) against imports of US goods and services in connection with a long-running spat between Airbus and Boeing, reported the Bloomberg news agency today.
WTO, the EU and Airbus declined to comment when contacted by AFP, while Boeing did not reply immediately.
A source close to the matter said the amount will likely be “a little less” than that reported by the media.
A decision will be announced on October 13, added the source.
An EU commission spokesman told AFP: “We regret that the confidentiality of the process has been broken.”
WTO’s decision “has not been finalised and is not yet public”, said the spokesman.
The EU and US accuse each other of providing illegal state aid to their respective aircraft manufacturers.
Last year, the trade body authorised US$7.5 billion in US sanctions against European goods and services.
It is the biggest amount authorised to date by WTO, and was a result of EU aid to Airbus that was deemed improper under international trade regulations.
The latest WTO decision, if announced in the middle of next month, would come just weeks before the US presidential election, in which international trade relations are an important issue.
When WTO authorised the US sanctions, Washington imposed a 15% tariff on aircraft imported from the EU and 25% tariffs on products such as wine, cheese, coffee and olives, according to a list published by the US trade representative. – AFP, September 30, 2020
.jpg)
