Plane maker Boeing received unfair subsidies from the US government, according to a World Trade Organisation report on Monday, and Boeing and its European rival Airbus immediately quarrelled over the scale of the supports. European rival Airbus said the report showed Boeing had received at least $5 billion in illegal subsidies and was only able to launch its 787 Dreamliner with such support. Boeing denied the assertions.
Both Airbus, Boeing received unfair subsidies. The two trading superpowers have been fighting for more than six years over each other's subsidies for large passenger aircraft. Monday's report by WTO exports marked the latest stage in the dispute as Airbus and Boeing battle for the $1.7 trillion market.
The findings in the related cases could colour a decision in the coming weeks by the US Air Force on whether to award Boeing or Airbus parent EADS a $25-50 billion contract for refuelling tankers. Both have supporters in the US Congress, as Boeing would build and finish the tanker in Washington and Kansas while Airbus would assemble it in Alabama.
With no end to the litigation in sight, both sides have periodically called for a negotiated end to the dispute, as EU Trade Commissioner Karel De Gucht did in September when an interim version of the report was issued. His spokesman noted on Monday the report confirmed those initial findings, suggesting Brussels was not keen to raise the stakes, or wanted to play down a previous WTO ruling that condemned its own support for Airbus. One EU diplomat said a political solution was preferable. "Given the state of the global airline industry today, a political agreement is important for both sides of the Atlantic," the diplomat said.
Comments
Comments are closed for this article.