WTO Finds EU Failed to Implement Ruling to Bring Measures into Conformity with Obligations under Subsidies Agreement (September 22, 2016) [1]
On September 22, 2016, the compliance panel of the World Trade Organization (WTO) circulated a report [3] on the EC and Certain Member States — Large Civil Aircraft dispute [4] that assessed the state of compliance by the EU (referred to as the EC or European Communities in the context of the WTO) and certain member states with a previous ruling by the Appellate Body (AB). The AB’s report [5] upheld the initial panel report [6], which found that the EU was providing subsidies to Airbus through certain measures that caused serious prejudice to the interests of the United States within the meaning of Article 5(c) of the Agreement on Subsidies and Countervailing Measures [7] (SCM). After the AB ruling, the EU had an obligation to "take appropriate steps to remove the adverse effects" or "withdraw the subsidy," as laid out in Article 7.8 of the SCM. In reviewing the EU’s remedial actions, the compliance panel determined that a “genuine and substantial” cause of serious prejudice to the United States' interests still existed within the meaning of Articles 5(c) and 6.3(a), (b) and (c) of the SCM. According to reports [8], the subsidies totaled almost $22 billion in value.