Britain says tariffs are no answer to Airbus dispute after WTO ruling

Britain said tariffs were in no-one’s interest and should not be applied to the UK after a ruling by the World Trade Organization on Wednesday that the United States could target $7.5 billion of imports from the European Union over illegal subsidies for plane maker Airbus.

“The UK government is clear that resorting to tariffs is not in the interests of the UK, EU or US. We are working closely with the US, EU and European partners to support a negotiated settlement to the Airbus and Boeing disputes,” the British government said after the WTO’s decision.

“We are also seeking confirmation from the WTO that the UK has complied fully with WTO rulings regarding support to Airbus, and should not be subject to tariffs,” the British government added.

On Wednesday, the World Trade Organization said that the United States can impose tariffs up to $7.5 billion worth of goods from the European Union as retaliation for illegal subsidies that the bloc gave to plane-maker Airbus - a record award from the trade body, according to The Associated Press.

The move green-lights the Trump administration to slap countermeasures on the 28-member bloc and follows a WTO ruling in May 2018 on the Airbus subsidies.

Wednesday’s award doesn’t end the long-running trans-Atlantic dispute over aircraft, WTO arbitrators are expected to rule next year on how much the EU can impose in tariffs following a separate decision that went against Boeing.