The US Trade Representative left little doubt on Thursday that the Obama administration would appeal a World Trade Organisation ruling that Boeing received illegal government subsidies. Ron Kirk promised to "protect our interests" when asked on the sidelines of a speech in Chicago whether the administration would appeal the March 31 ruling that Boeing received at least $5.3 billion in illegal subsidies in the long-running dispute.
"We don't discuss our legal strategies in the WTO but we are examining that role and making sure we protect our interests," Kirk told reporters. "If you look at the fairly aggressive posture we've taken over the last 14 years, I think you can draw a reasonable conclusion" about an appeal of the WTO ruling. Kirk emphasised that the WTO had ruled previously that Boeing rival Airbus had received at least $20 billion in illegal subsidies, a ruling that both sides have appealed.
Analysts have anticipated a US appeal of the Boeing ruling, which the European Commission hailed as a "clear-cut victory." Europe also appealed because it believes the subsidies to be higher. The United States was unlikely to accept the Boeing decision to put pressure on the European Union to accept the Airbus ruling, the analysts said.