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Airbus announced Friday that waiver of the preferential credits granted by Spain and France for your aircraft A350, considered illegal state aid by the WTO, and that have resulted in tariffs of thousands of millions of dollars a year that the united States imposes on various european products.
The announcement comes just under the double pressure from all sectors subject to those tariffs americans, such as olive oil, table olives, wine, cheese or pork products; and from Washington, which has threatened to increase them even more next month, with the approval of the World Trade Organization (WTO).
From the Ministry of Industry have pointed out that the modification of contracts in the case of Spain, will be effective in “the next few days to lack of administrative procedures” and these changes, in the opinion of the department of Reyes Maroto , become not justified by the countermeasures of the united States on products such as wine or Spanish olive oil.
In this regard, it is recalled that this dispute over trade in large civil aircraft involving Airbus and Boeing are suffering 16 . Spain has reaffirmed its commitment to a “negotiated solution” with the united States, although it has nuanced that in the absence of the same it will use the panel “of subsidies to Boeing,” to impose sanctions on american products. Its publication is planned for late September or October.
A dispute of high-flying
In particular, the World Trade Organization (WTO) ruled in October of 2019, which aid the model A-350 were contrary to their rules and gave the green light to the united States to impose new tariffs. What did the countries of the European Union for an amount of 7,500 million dollars . The Spanish countryside was one of the victims propiciadoras, while Airbus has imposed a tariff of 10%, which was raised in January of this year up to 15%. Among the affected products, with tariffs of up to 25% and some as the olive oil within a review process whose consultation period concludes this Sunday, the cheeses, the ham, lemons, oranges, soft drinks, or, especially, the wine.
A situation that began last October 18 and that, both from Brussels and the Government of Spain, do not expect to resolve until you publish the panel against Boeing , scheduled for the end of September or October and, probably, give the European Union the possibility of imposing new tariffs on american products.
Pressure in the affected sectors
Airbus has pointed out that the tariffs imposed by the Trade Representative of the united States (USTR), authorized by the WTO, they are hurting now all the industrial sectors affected , including us airlines, and they are adding up to a very difficult environment that has caused the crisis of the Covid-19.
Before this, Airbus has argued its decision to give a final step to remove the last sticking point and modify the contracts to French and Spanish to what the WTO considers the appropriate interest rate and the risk evaluation.
The WTO has already ruled that the contracts of Investment Release-Refundable (RLI) are a valid instrument for governments to partner with the industry sharing the risks of the investment. “With this final move, Airbus is considered to be in full compliance with all resolutions of the WTO”, remarked the company.
“We have fully complied with all the requirements of the WTO . This last step shows that Airbus has left no stone unturned to find a solution. It is a clear signal of support to those who suffer the impact of tariffs , especially when also affected by the crisis of the Covid-19″ has secured the company’s ceo, Guillaume Faury.
