- Country or region
- United States
- Trade topics
- Dispute settlement
- Dispute settlement
- WTO - Case launched by the EU
Summary of the case
- Complaint by: EU
- Complaint against: United States
- Third parties: Australia, Brazil, Canada, China, Japan, Korea, Republic Of
Prohibited and actionable subsidies provided to US producers of large civil aircraft (LCA) and in particular to Boeing, as well as legislation, regulations, statutory instruments and amendments thereto providing such subsidies, grants and any other assistance to the US large civil aircraft industry.
Relevant WTO provision: SCM 3.1(a)(b), 3.2, 5(a)(c), 6.3(a)(b)(c), GATT 1994 (III:4)
On 11 October 2012, the EU requested the establishment of a compliance panel. The compliance panel report was circulated on 9 June 2017. It concluded that by continuing to be in violation of Articles 5(c) and 6.3(a), (b), and (c) of the SCM Agreement, the US failed to implement the DSB recommendations and rulings to bring its measures into conformity with its obligations.
On 29 June 2017, the EU notified the DSB of its decision to appeal certain issues of law and legal interpretations developed by the compliance panel. On 10 August 2017, the US notified its decision to cross-appeal. On 28 March 2019, the compliance AB report was circulated to Members. On 11 April 2019, the DSB adopted the AB report and the panel report, as modified by the AB report.
Proceedings under Article 22 of the DSU (remedies): On 27 September 2012, the EU requested authorization by the DSB to take countermeasures under Article 22 of the DSU, and Articles 4.10 and 7.9 of the SCM Agreement. On 22 October 2012, the US objected to the level of suspension of concessions or other obligations and referred the matter to arbitration pursuant to Article 22.6 of the DSU.
At the DSB meeting on 23 October 2012, it was agreed that the matter is referred to arbitration. At the request of the parties, the Arbitrator suspended the arbitration proceedings from 28 November 2012. On 20 May 2019 the EU requested the resumption of the arbitration. The Arbitrator resumed its work as of 5 June 2019. The arbitration proceeding was completed on 13 October 2020 and the EU has been authorised to impose countermeasures for the amount of around 4 billion USD at the DSB meeting of 26 October 2020. On 7 November 2020, the Commission adopted Implementing Regulation (EU) 2020/1646 imposing the countermeasures against the US.
- Consultations requested: 01 July 2005
- Panel requested: 11 October 2012
- Panel established: 30 October 2012
- Panel report circulated: 09 June 2017
- Appeal requested: 29 June 2017
- Appeal report circulated: 09 June 2017
- Panel/Appellate Body report adopted: 11 April 2019