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.”