European Trade Commissioner Cecilia Malmstroem insisted that the ruling also rejected "the vast majority" of U.S. claims against it, while saying in a statement that the bloc "will now take swift action to ensure it is fully in line with the WTO's final decision in this case".
Boeing says Airbus received illegal aid worth $22 billion, including $18 billion in loans from governments.
The World Trade Organization (WTO) opened the door for the Trump administration to impose billions of dollars in retaliatory sanctions on European imports with a landmark ruling on Tuesday that Europe had illegally subsidised the aircraft giant Airbus to the detriment of its United States competitor Boeing.
European Trade Commissioner Cecilia Malmstroem insisted that the ruling also rejected "the vast majority" of United States claims against it, while saying in a statement that the bloc "will now take swift action to ensure it is fully in line with the WTO's final decision in this case".
Boeing may lose upward of $20 billion in aircraft sales because of the USA withdrawal from the nuclear pact.
Later this year, a separate WTO compliance panel is expected to deliver its decision on whether the United States complied with the terms of a 2012 ruling against illegal U.S. tax subsidies that gave Boeing an unfair advantage. "The commercial success of products and services should be driven by their merits and not by market-distorting actions", said Boeing head Dennis Muilenburg.
Boeing hailed the "landmark ruling" from the WTO and said that the decision cleared the way for tariffs against European imports to the US. It still has to decide whether Boeing received unfair subsidies from Washington state.
It said that tariffs could be in place as early as 2019 and were expected to be the largest-ever WTO authorisation of retaliatory tariffs. It is anticipated that USA tariffs will be authorized up to the amount of annual harm the subsidies are determined to cause.
The European Commission argued that the WTO decision rejected most USA claims and was its victory.
EU Trade Commissioner Cecilia Malmström said the WTO "has definitively rejected the USA challenge on the bulk of EU support to Airbus". One case has already ended in favor of the United States, and in the other, the vast majority of the allegations the European Union made against the United States and Boeing were dismissed.
"The EU will now take swift action to ensure it is fully in line with the WTO's final decision in this case".
The report came almost 14 years after America brought the dispute to the WTO at the behest of Boeing, Airbus's closest rival.
But EU Trade Commissioner Cecilia Malmstrom also conceded that WTO had put the onus on the bloc to change its subsidies practices regarding Airbus.
"For decades, the European Union has flouted its WTO commitments at the expense of American aerospace workers and companies".
In its report, the Appellate Body confirms the legality of the loan partnership approach between Airbus and European governments.