On Wednesday, October 2, 2019, the World Trade Organization (WTO) allowed the U.S. to set duties on $7.5 billion worth of European Union (EU) goods as a consequence of the long-running legal battle over subsidies to Airbus. The U.S. originally asked for authorization to impose duties on $11 billion of EU goods; the WTO arbitrator has calculated the lower $7.5 billion amount for the actual retaliation.  A series of WTO panels have been examining the details since 2004 and determined that the EU illegally subsidized the launch of the Airbus A350 and A380 twin-aisle jets. The EU is seeking a similar ruling in its parallel case against U.S. subsidies granted to Boeing. It has requested the WTO to authorize duties on $12 billion worth of U.S. goods, an action which could be finalized next spring.

This ruling from the WTO against Airbus allows President Trump’s administration to set increased import duties on large civil aircraft and parts imported from the EU, as well as EU wines, cheeses, motorcycles and apparel luxury items such as men’s suits and handbags.

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Photo of Frances P. Hadfield Frances P. Hadfield

Frances P. Hadfield is a counsel in Crowell & Moring’s International Trade Group in the firm’s New York office. Her practice focuses on forced labor and withhold release orders (WRO), import regulatory compliance, and customs litigation. She regularly advises corporations on matters involving…

Frances P. Hadfield is a counsel in Crowell & Moring’s International Trade Group in the firm’s New York office. Her practice focuses on forced labor and withhold release orders (WRO), import regulatory compliance, and customs litigation. She regularly advises corporations on matters involving customs compliance, audits, customs enforcement, as well as import penalties.

Frances represents clients before the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit, as well as in proceedings at the administrative level. She advises corporations on both substantive federal and state regulatory issues that involve U.S. Customs and Border Protection, the Federal Trade Commission, Food and Drug Administration, and U.S. Fish & Wildlife in matters pertaining to product admissibility, audits, classification, import restrictions, investigations, marking, licenses, origin, penalties, and tariff preference programs.