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World Trade Org expected to rule against Airbus - US news viewpoint

Started by Phil Bunch, Thu, 3 Sep 2009 17:43

Phil Bunch

See this news story for a US-centric view of the pending announcement of a World Trade Organization ruling against Airbus subsidies.  

Seen as a pending victory for Boeing, who also receives various direct and indirect subsidies from the US government, the US military, etc.  Some also argue that Boeing's globalized aircraft businesses benefit from assorted government support and subsidies from the many centrally planned economies around the world.

http://online.wsj.com/article/SB125191418006080337.html#printMode

(I'm not taking a position of this issue but merely thought that the news article was interesting.  I have no personal knowledge of what objective truth is in this matter.)

(On the other hand, I do admit to preferring Boeing!  They make and sell the 747!!!)
Best wishes,

Phil Bunch

Phil Bunch

A new article on this topic was published today:

http://online.wsj.com/article/SB125206164068986193.html

Here's an excerpt:

BRUSSELS -- The World Trade Organization ruled Friday that Europe's Airbus, a unit of European Aeronautic Defence & Space Co., had received illegal subsidies from European Union governments, according to a person familiar with the matter. In its interim decision on the case, the WTO said that every launch aid package given for the A380 passenger jet was an illegal subsidy.
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I suspect that these issues will keep churning in the various organizations and courts for some years to come.  At some point along the way my limited understanding is that the US will become entitled to charge tariffs on Airbus imports into the USA.  I don't know if the EU has any relevant agreements with the WTO or if the WTO is a standalone organization.
Best wishes,

Phil Bunch