ITIF Applauds WTO Airbus Ruling

October 2, 2019

WASHINGTON—In response to today’s ruling from the World Trade Organization (WTO) that the United States is entitled to levy tariffs of $7.5 billion on exports from the European Union (EU) due to subsidies supplied to Airbus, the Information Technology and Innovation Foundation (ITIF), the world’s leading think tank for science and technology policy, released the following statement from ITIF Vice President Stephen Ezell:

The WTO’s ruling is an appropriate response and demonstrates that it is taking a firmer stand against countries’ use of innovation mercantilist practices, including the use of excessive production subsidies. EU aid significantly distorted competition in aerospace markets by allowing Airbus to secure financing on better-than-commercially available terms. While U.S. and EU policymakers should reach a comprehensive settlement on the ongoing Airbus and Boeing dispute, USTR is right to consider countermeasures in the meantime in the form of additional tariffs, commensurate with the extent of injury inflicted by the EU’s WTO-inconsistent subsidies.

For additional background, see ITIF’s recent testimony on “Enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute.”