WTO allows European Union to put tariffs on $4 billion of US goods over Boeing support

The World Trade Organization arbitrators on October 13 ruled that the European Union could sanction American goods for an amount of up to $4 billion. The decision comes after the organisations convicted Washington of illegally supporting plane maker Boeing. While the US argued that the support merited not more than $412 million, the EU demanded a penalty worth $8 billion.

Read: US Calls For Reforms After WTO Rules In Favour Of China In Tariffs Case

Read: Trade Body: China Can Hit US With Sanctions Worth $3.6 Bln

One of the highest penatlies

The ruling marks one of the highest penalties by the Geneva-based organisation and as per experts, could also attract the Trump administration's criticism. During their probe, WTO’s appellate body found that Boeing had received at least $5 billion in subsidies that were prohibited under international trade rules. The decision made in the aftermath is final and could not be repealed, Ascoaited Press reported. 

Last month, WTO  ruled against the United States in a case that was taken to the intergovernmental body by China over violations of international trading rules by Washington as it imposed tariffs on goods from Beijing. The WTO panel found that the United States had breached global trading rules because billions of dollars worth of tariffs imposed by Washington only applied to Chinese goods.

Trump administration in 2018 imposed multibillion-dollar tariffs on China accusing the Chinese side of stealing intellectual property rights and forcing American companies to transfer technologies. The panel found the duties to be inconsistent because they were applied in excess of the rates to which the United States bound itself in its Schedule of Concessions. The panel in its report further found that the United States has not demonstrated why the measures are provisionally justified.  

Read: India Urges WTO To Relax Intellectual Property Rules For COVID-19, South Africa Supports

Read: Trade Body: China Can Hit US With Sanctions Worth $3.6 Bln

Image: AP