SCHIPHOL-RIJK (dpa-AFX) - Airbus (EADSF.PK, EADSY.PK) said that it has agreed with the governments of France and Spain to make amendments to the A350 Repayable Launch Investment or RLI contracts.
The company said, after 16 years of litigation at the World Trade Organisation (WTO), that it has taken final step to stop the long-standing dispute and removes any justification for U.S. Tariffs.
The company noted that the tariffs imposed by the United States Trade Representative are currently harming all targeted industry sectors, including U.S. airlines, and are adding to a very difficult environment as a consequence of the COVID-19 crisis. Therefore, the company has decided to make a final step to remove the last contentious point and amend the French and Spanish contracts to what the WTO considers the appropriate interest rate and risk assessment benchmarks.
The WTO has already ruled that RLI is a valid instrument for governments to partner with industry by sharing investment risks. With this final move, Airbus considers itself in complete compliance with all WTO rulings.
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