The FINANCIAL -- At the meeting of the Dispute Settlement Body on 19 December 2011, the
EU announced it had taken all appropriate steps to implement the Airbus
rulings.
The US challenged the EU’s claims.According to Article 7.9 of the Subsidies and Countervailing Measures Agreement, the EU had until 1 December 2011 to implement the DSB ruling. On 1 December 2011, the EU issued a communication referring to the implementation of the DSB recommendation.
The EU announced it has taken appropriate steps to bring its measures fully into conformity with its WTO obligations and to comply with the DSB recommendations. The EU said it had ensured full implementation. The EU expressed serious concerns that despite its compliance report, the US had already made a request under article 22.2 of the Dispute Settlement Understanding or authorisation to suspend concessions and that the US had also initiated consultations under Article 21.5 of the DSU.
The US said that it had carefully reviewed the steps taken by the EU and added that they did not bring the EU into compliance with the DSB ruling. In light of its serious questions regarding the EU’s compliance, the US said it had requested consultations with the EU as well as DSB authorisation to take countermeasures. The US added that it was considering the EU’s proposal for a bilateral sequencing agreement.
The EU responded that both parties clearly disagree on compliance and that there was a very clear procedure to resolve this disagreement under Article 21.5 of the DSU. The EU looked forward to the consultations with the US to resolve this dispute.
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