WTO decision in large civilian aircraft dispute; EU countermeasures against United States

WTO decision in large civilian aircraft dispute

The World Trade Organization (WTO) today announced that a WTO arbitrator has issued a decision allowing the European Union (EU) to impose tariffs of approximately $4 billion with regard to imports of U.S. goods.

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Read the WTO release and a one-page summary [PDF 134 KB] of the WTO decision in “United States — Measures Affecting Trade in Large Civil Aircraft — Second Complaint” (DS353).

  • The EU sought the right to impose countermeasures relating to the Washington State business & occupation (B&O) tax rate reduction (repealed). The WTO arbitrator did not take into consideration Washington State’s repeal of that tax provision on April 1, 2020, limiting the review to the period 2012-2015. Washington State in March 2020 passed legislation that eliminated a preferential tax rate for aerospace manufacturing. Read TradeNewsFlash
  • The EU also sought the right to impose countermeasures relating to NASA and Department of Defense research and development (R&D) subsidies, but the WTO arbitrator rejected that request based on aeronautics R&D measures that were not found to breach WTO rules in a prior compliance proceeding.

Read a preliminary list of products [PDF 56 KB] initially proposed in 2019 for additional tariffs by the EU.

This action is the latest in this dispute between the United States and EU. Read TradeNewsFlash


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