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WT/DS353 - Measures Affecting Trade in Large Civil Aircraft (second complaint)

Last update: 28/09/2012

  • Complaint by: EU
  • Complaint against: United States
  • Third parties:
    Australia - Brazil - Canada - China - Japan - Korea, Republic Of
Summary of case:

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)

Current situation:

The EU filed its first written submission on 22 March 2007 to which the US responded on 9 July 2007. The first meeting of the Panel with the parties took place in September 2007 followed by the second meeting in January 2008. The Interim Report of the Panel was made available to the parties on 15 September 2010. The Final Panel Report was issued on 31 January 2011, whilst the publication to all WTO Members was made on 31 March 2011. The Panel judged that the US Federal and State governments granted WTO-incompatible subsidies to Boeing. The EU submitted its Notice of Appeal on 1 April 2011 and its Appellant submission on 21 April 2011. On the other hand, the US submitted its Notice of Other Appeal and Appellant Submission on 28 April 2011. The oral hearings of the Appellate Body took place in August and October 2011. On 12 March 2012, the Appellate Body report was circulated to Members and adopted by the Dispute Settlement Body (DSB) on 23 March 2012, the). The Appellate Body rejected the US appeal and confirmed several of the key findings of the Panel report. It found that US Federal and State governments granted between US$ 5 and 6 billion WTO-incompatible subsidies to Boeing between 1989 and 2006. Subsidies to be granted after this date are estimated to be at least US$3.1 billion. On 24 September 2012 the US notified the European Union that it had taken a number of actions withdrawing the subsidies or removing their adverse effects. The EU considered that the United States had not complied with the DSB recommendations and rulings because it maintained a series of subsidies which cause adverse effects to the interests of the EU. On 25 September 2012 the European Union therefore filed a request for consultations under Article 21.5 of the Dispute Settlement Understanding (DSU) and on 27 September 2012 a request for the authorisation of countermeasures amounting to up to US$ 12 billion.

Consultation:

Date of request: 01/07/2005

Panel:

Date of request: 20/01/2006
Date of establishment: 17/02/2006
Date of circulation of report: 31/03/2011

Appeal:

Date of request: 01/04/2011

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