Airbus takes steps to end long-standing WTO dispute with Boeing

Airbus has agreed with the governments of France and Spain to make amendments to the A350 Repayable Launch Investment (RLI) contracts.

After 16 years of litigation at the World Trade Organisation (WTO), Airbus says this is a final step to stop the long-standing dispute and removes any justification for US tariffs.

The tariffs imposed by the United States Trade Representative (USTR) are currently harming all targeted industry sectors, including US airlines, the aircraft manufacturer says, and are adding to a very difficult environment as a consequence of the COVID-19 crisis.

This is why Airbus has decided to make this step to remove what is thought to be the last contentious point and amend the French and Spanish contracts to what the WTO considers the appropriate interest rate and risk assessment benchmarks.

The WTO has already ruled that RLI is a valid instrument for governments to partner with industry by sharing investment risks. With this final move, Airbus considers itself in complete compliance with all WTO rulings.

“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,” said Airbus CEO Guillaume Faury. “This is a clear signal of support to those who are suffering from the severe impact of the tariffs imposed by the USTR, especially at a time when industries are hard hit by the consequences of the COVID-19 crisis.”

www.airbus.com

Company

Airbus

Related Articles

Fighting fit!

Adrian Wilson charts the expanding role of GKN in the on-going and often controversial development of Lockheed Martin's US fighter aircraft programme.
7 years ago Features

A320neo demand flexes the chain

Dafydd Evans, managing director in the Mergers & Acquisition (M&A) Advisory Practice at Duff & Phelps looks at the trends and considerations affecting the Airbus A320neo supply chain.
7 years ago Features

Partnership spreads its wings

Paul Rogger, technical director at JR Technology (JRTL), explains how a partnership with two companies led to the development of a solution to add material to four large automated fibre placement (AFP) mandrels
8 years ago Features
Most recent Articles

Carter enjoys success at HAI HELI-EXPO event

Acknowledged as the World’s largest vertical aviation conference and trade show, HAI HELI-EXPO 2024 provided precision bearing specialists Carter Manufacturing a perfect opportunity to exhibit its extensive range of aerospace bearing installation, removal and testing tools, along with PMA bearing options.
2 days ago News

Login / Sign up