Airbus VS Boeing - yet another threat for spring and fastener industries

On 14 October, the WTO's Dispute Settlement Body (DSB) agreed to authorize the USA to impose countermeasures on imported EU goods and services up to $7,496.623 million per year.

As stated in the World Trade Organization’s Dispute Settlement 316, such decision was taken after European Union and particular EU members failed to cease subsidies for the European aircraft manufacturer Airbus, hampering the sales of the American competitor Boeing.

On the one hand, the US stated that this large amount of money would prove the claim of United States.
The EU, on the other hand, said that the WTO arbitrator’s decision is concerning for a number of reasons, such as no real analysis of the subsidy benefits and a disproportion between US countermeasures and EU public fundings.
Nevertheless, the United States claimed they have been looking for an agreement for the past 15 years, but European Union has been replying inconsistently to negotiation requests.

Canada also had a word, sympathizing with Europe about the need for arbitrators to consider the current European points for a fair resolution of this dispute, highlighting the urgency to avoid an endless litigation. Moreover, Ottawa called on the US to show restraint, declaring that the health of an increasingly integrated aircraft industry, the WTO's dispute settlement system and the global economy depended on it.

This dispute could result in a further setback for the fastener and spring industries, as well as for the whole steel supply chain, already facing a significant crisis of the automotive field.

The next DSB meeting is scheduled for 28 October.
For further information on WTO's dispute settlement system, please click here.

Photo by Kiefer