Decision

Trade dispute DS353: complaint by the EU (including the UK) regarding measures affecting trade in large civil aircraft

Published 18 February 2022

Summary

Complaint by: European Communities (including the UK)

Complaint against: United States

Third Parties: Australia; Brazil; Canada; China; Japan; Republic of Korea

On 27 June 2005, the European Communities initiated a World Trade Organization (WTO) dispute against the United States. The dispute concerned payments provided by the US to US producers of aircraft.

The WTO judged that these payments were not within the WTO’s rules.

The WTO website has more information on trade dispute DS353.

Current situation

On 26 October 2020, the WTO’s Dispute Settlement Body gave the European Communities authorisation to apply additional tariffs on US goods. The UK applied these tariffs whilst it was a member of the European Union. Following the end of the Transition Period, the United Kingdom took a de-escalatory approach and stopped applying tariffs from 1 January 2021.

As a result, on 17 June 2021, the UK and US reached an understanding which means tariffs related to this dispute were suspended for 5 years. This arrangement also established a framework for continued cooperation between the UK and US in this area.

Read the joint US-UK statement on a cooperative framework for large civil aircraft.