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Boeing calls EU tariff decision 'disappointing,' urges moves to resolve dispute

FILE PHOTO: Grounded Boeing 737 MAX aircraft are seen parked in an aerial photo at Boeing Field in Seattle, Washington, U.S. July 1, 2019. REUTERS/Lindsey Wasson

WASHINGTON (Reuters) - U.S. aerospace company Boeing Co BA. said the European Union's decision to slap 15% tariffs on Boeing planes and other U.S. goods was "disappointing and surprising," and urged its rival Airbus AIR.PA and Brussels to work to resolve the long-running trade dispute.

The EU on Monday said it would impose tariffs on up to $4 billion (£3 billion) of U.S. imports, effective Tuesday, in retaliation for U.S. subsidies for Boeing, the latest twist in a 16-year U.S.-EU dispute over civil aviation subsidies.

U.S. tariffs on $7.5 billion of EU products have been in place for over a year after Washington state won a parallel World Trade Organization case against European multinational aerospace company Airbus.

Boeing said the decision was surprising since Washington state had repealed a tax break challenged by the European Union, and said the tariffs would hit U.S.-headquartered companies and their Europe-based workers, suppliers and customers based.

Brussels says only the WTO can determine whether members have complied with its rulings. Both sides accuse the other of ignoring WTO rulings while claiming to be in compliance themselves.

“Instead of escalating this any further, we hope that Airbus and the EU will take meaningful action to resolve this trade dispute,” the company said.

Both sides say they have made proposals aimed at resolving the dispute, but dismiss the other side’s recommendations as insufficient or unacceptable.

Reporting by Andrea Shalal; Editing by Chris Reese and Aurora Ellis

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