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Boeing-Airbus dispute moves ahead in WTO court

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posted on Aug, 17 2016 @ 11:34 AM
In the latest round of "No I didn't, you did!" the Boeing v Airbus case in the World Trade Organization courts is slowly moving forward, while another case is building steam. The case originally started in 2004 over government subsidies to both planemakers. Each calls the other's subsidies illegal. There is the potential for $22B a year in sanctions over the case. Both sides are currently arguing over whether they've complied with requirements that they withdraw illegal subsidies. The court is expected to rule in the coming weeks on the European subsidies, and early next year on the US subsidies.

Meanwhile, Airbus is arguing that Boeing is receiving illegal benefits to keep the 777X program in Washington. The state offered $8.7B in tax breaks to keep the work in Washington instead of moving it to the Boeing facility in Charleston. In 2003 the WTO found that an almost identical package offered to Boeing by the state caused "serious predjudice" but didn't cross the line into prohibited support.

The world's two largest jetmakers are bracing for the next round in a transatlantic spat over billions of dollars of aircraft subsidies, amid accusations of widening U.S. support for Boeing and persistent European aid to Airbus.

After a year-long lull, the world's biggest trade dispute will enter a crucial phase in coming months, potentially casting a shadow over faltering efforts by the European Union and United States to negotiate a wider free-trade deal.

At stake are mutual claims of unfair subsidies to the two planemakers that raise the prospect of $22 billion (17.05 billion pounds) a year in threatened trade sanctions, though many say a resolution remains years away and could ultimately involve a negotiated settlement.

The dispute, said to be the biggest in terms of value and time, dates back to 2004 when the U.S. urged the World Trade Organization (WTO) to act against European government loans to help Airbus develop jets such as the A380, followed by a counter-claim from the EU over federal and local aid for Boeing.

posted on Aug, 18 2016 @ 01:05 AM
I have advice for both sides.

People who live in glass houses, shouldn't throw stones.

And, pot meet kettle.

What is wrong with any Government supporting industries that work heavily in the defense industries.


ETA. I keep giving you stars and flags ... but you don't really need them do you

edit on 18/8/2016 by pheonix358 because: (no reason given)

posted on Aug, 18 2016 @ 05:41 AM
a reply to: pheonix358

The more subsidies one gets, the more they can cut costs of the list price of their aircraft and undercut the other. There's no problem with subsidies, the argument is that they need to level the playing field and not give either an advantage when it comes to sales.

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