In a press release from the National Association of Manufacturers regarding the WTOs ruling that some subsidies received by Airbus had hurt competitor Boeing and were illegal Vice President for International Economic Affairs Frank Vargo said By upholding the WTOs ruling the Appellate Body sets an important precedent that government intervention in the development of the aerospace industry is a clear violation of the rules.
Vargo added Manufacturers believe it is important to our nations economic growth and competitiveness that both the US and the European Union and its member states adhere to global trade rules. Adherence and enforcement of trade rules in the aerospace industry is beneficial not only for competition but for consumers who benefit from better products.
WTO Issues Mixed Ruling On Airbus Subsidies Appeal.
The AP (5/18 Jordans) reported Airbus received state subsidies that hurt US rival Boeing Inc. but not all of them were illegal under international rules the World Trade Organization said Wednesday. The mixed decision came after the WTO ruled on an Airbus appeal of a decision last June. Both US and European officials said the appeals ruling favored their positions. US Trade Representative Ron Kirk said the panels ruling still meant Airbus had received $18 billion in illegal state support over four decades. The article noted Boeing and Airbus also heralded the ruling as a win for their side.
According to the Wall Street Journal (5/19 Miller Subscription Publication) the mixed ruling means a negotiated settlement on subsidies between the US and Europe is now more likely. Now the EU has to take appropriate steps to remove the adverse effects or...withdraw the money according to the ruling.
The New York Times (5/19 B3 Clark Subscription Publication) reports that while the WTO found Boeing lost market share to Airbus due to the aid the panel rejected claims by the United States that state financing for the Airbus A380 superjumbo jet was automatically prohibited under global trade rules the officials said. However when it came to the A380 loans the WTO did find many of them to be actionable which will require European governments to propose some form of remedy in the coming months to offset the benefit of any outstanding subsidies trade lawyers said.
The Seattle Post-Intelligencer (5/19 Cohen) notes the most-serious finding in the original ruling was overturned. Bob Novick an outside lawyer working for Boeing on the case noted that despite the findings everything that Boeing cared about was confirmed. Reuters (5/19 Lewis) reports other countries will be looking at the ruling as new companies are launching planes into the markets dominated by Boeing and Airbus.
In a press release from the National Association of Manufacturers regarding the WTOs ruling that some subsidies received by Airbus had hurt competitor Boeing and were illegal Vice President for International Economic Affairs Frank Vargo said By upholding the WTOs ruling the Appellate Body sets an important precedent that government intervention in the development of the aerospace industry is a clear violation of the rules.
Vargo added Manufacturers believe it is important to our nations economic growth and competitiveness that both the US and the European Union and its member states adhere to global trade rules. Adherence and enforcement of trade rules in the aerospace industry is beneficial not only for competition but for consumers who benefit from better products.
WTO Issues Mixed Ruling On Airbus Subsidies Appeal.
The AP (5/18 Jordans) reported Airbus received state subsidies that hurt US rival Boeing Inc. but not all of them were illegal under international rules the World Trade Organization said Wednesday. The mixed decision came after the WTO ruled on an Airbus appeal of a decision last June. Both US and European officials said the appeals ruling favored their positions. US Trade Representative Ron Kirk said the panels ruling still meant Airbus had received $18 billion in illegal state support over four decades. The article noted Boeing and Airbus also heralded the ruling as a win for their side.
According to the Wall Street Journal (5/19 Miller Subscription Publication) the mixed ruling means a negotiated settlement on subsidies between the US and Europe is now more likely. Now the EU has to take appropriate steps to remove the adverse effects or...withdraw the money according to the ruling.
The New York Times (5/19 B3 Clark Subscription Publication) reports that while the WTO found Boeing lost market share to Airbus due to the aid the panel rejected claims by the United States that state financing for the Airbus A380 superjumbo jet was automatically prohibited under global trade rules the officials said. However when it came to the A380 loans the WTO did find many of them to be actionable which will require European governments to propose some form of remedy in the coming months to offset the benefit of any outstanding subsidies trade lawyers said.
The Seattle Post-Intelligencer (5/19 Cohen) notes the most-serious finding in the original ruling was overturned. Bob Novick an outside lawyer working for Boeing on the case noted that despite the findings everything that Boeing cared about was confirmed. Reuters (5/19 Lewis) reports other countries will be looking at the ruling as new companies are launching planes into the markets dominated by Boeing and Airbus.
