President Donald Trump, today considered the ruling of the World Trade Organization (WTO) that states that the United States may sanction the European Union (EU) with trade measures for illegal subsidies to the European airline Airbus “a big win”.
“It is a great triumph”, Trump remarked in a press conference with his Finnish counterpart, Sauli Niinistö, in the White House.
The government thus welcomed the opinion of the body in favour of the aeronautical manufacturer Boeing because of European aid and subsidies to its competitor Airbus, for which Washington will be able to sanction the EU with 7,500 million dollars in commercial matters.
“A great triumph for the US, you’ve never had victories like that with other presidents, have you? We’re having a lot of triumphs at the WTO now,” Trump said.
“Victories (are happening) now. They think I don’t like the WTO and they want to make sure I’m happy,” he added.
In a long-awaited arbitration ruling, the agency temporarily tipped the balance in Washington’s favor in a 15-year dispute that began before Trump arrived at the White House in January 2017.
Specifically, in its ruling, the WTO determined the adverse effects on Boeing in relation to five aircraft sales campaigns that Airbus won between 2011 and 2013, and that it considered that the former would have won had there been no subsidies for the latter.
The assessment was based on the delivery of 47 Airbus A380 aircraft to the markets of Australia, China, the EU, South Korea, Singapore and the United Arab Emirates.
From now on, measures implemented by Washington may take the form of the suspension of tariff concessions for EU goods, as well as its obligations towards EU service providers, with the exception of financial services.
However, this decision is not the end of this dispute, since the WTO will have to pronounce next year on the trade sanctions that this time it would be up to the EU to apply against the US for a parallel dispute that is also in the hands of that international organisation.