Arbitrator on US sanctions against EU over Airbus subsidy

Arbitrator issues decision in Airbus subsidy dispute

On 2 October, a WTO arbitrator issued its decision on the level of countermeasures the United States may request with respect to the European Union and certain EU member states in “European Communities and Certain member States — Measures Affecting Trade in Large Civil Aircraft” (DS316).

--

Summary of key findings

The subsidies at issue in this proceeding were actionable subsidies disciplined under Part III of the SCM Agreement. The Arbitrator determined that the level of countermeasures “commensurate with the degree and nature of the adverse effects determined to exist”, in the December 2011-2013 reference period (which was the same reference period used in the compliance proceedings) within the meaning of Article 7.10 of the SCM Agreement, amounts to USD 7,496.623 million per annum. Therefore, the Arbitrator concluded that the United States may request authorization from the DSB to take countermeasures with respect to the European Union and certain member States, as indicated in document WT/DS316/18, at a level not exceeding, in total, USD 7,496.623 million annually.

These countermeasures may take the form of (a) suspension of tariff concessions and related obligations under the GATT 1994, and/or (b) suspension of horizontal or sectoral commitments and obligations contained in the United States' services schedule with regard to all services defined in the Services Sectoral Classification List, except for financial services.

--

DS316 European Communities and Certain Member States — Measures Affecting Trade in Large Civil Aircraft
Download:
• Just the findings and conclusions in pdf format
In pdf format:
• Decision of the Arbitrator
• Addendum

© Scoop Media