Airbus (AIB, Toulouse Blagnac) has reached an agreement with the governments of France and Spain to change the terms of the A350 Repayable Launch Investment in the hopes that this will end 16 years of litigation at the World Trade Organisation and US tariffs on Airbus aircraft.
"We have fully complied with all the WTO requirements. These additional amendments to the A350 RLIs demonstrate that Airbus has left no stone unturned to find a way towards a solution. This is a clear signal of support to those who are suffering from the severe impact of the tariffs imposed by the US Trade Representative, especially at a time when industries are hard hit by the consequences of the COVID-19 crisis," Chief Executive Guillaume Faury said.
The European manufacturer hopes to end the ongoing dispute with the US, which in late 2019 imposed a 10% tariff on all Airbus aircraft delivered to the US. The US government has long alleged that Airbus received illegal subsidies from European governments to launch and sell at preferential prices, a number of aircraft types, including the A350.
In 2018, the WTO Appellate Body rejected most American allegations and did not deem the public aid to Airbus illegal. However, it did pinpoint a number of conditions in the terms of the loans received by the European manufacturer as contravening WTO rules, which served as the basis for the US tariffs.
Airbus changed the terms of its loan from the German government in December 2019 and has fully repaid the loan it received from the UK. However, the US administration has yet to signal any willingness to lift the tariffs in response.
Airbus said it considered itself to now be in full compliance with WTO rules.
