Airbus announced it reached agreement with the French and Spanish governments to amend repayable launch aid arrangements deemed by the WTO to be an unfair subsidy relative to the Airbus A350 airplane.
The launch aid arrangement was a loan linked to exports that helped Airbus develop new models with low interest rates on the loan.
“After 16 years of litigation at the World Trade Organization, this is the final step to stop the longstanding dispute and removes any justification for U.S. tariffs,” Airbus said in a statement. “The tariffs imposed by the United States Trade Representative (USTR) are currently harming all targeted industry sectors, including U.S. airlines, and are adding to a very difficult environment as a consequence of the COVID-19 crisis.”
There are a number of ag products already hit by tariffs and more that the U.S. is considering hitting with heavier tariffs in the dispute, setting a deadline of August for comments on the plan.
“With this final move, Airbus considers itself in complete compliance with all WTO rulings,” Airbus said. A loan from the UK, also part of the dispute, has already been repaid, and the aid extended to Airbus by Germany has already been amended.
There has been no reaction yet from the U.S. side.
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