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WTO rules $24b Boeing subsidies are ‘illegal'
Published in The Saudi Gazette on 16 - 09 - 2010

The WTO issued a preliminary report on the aid after the EU alleged that Boeing had received $24 billion (£15.3 billion) in illegal support, including grants from Nasa, export tax discounts and subsidies from the Pentagon.
It is believed that, although the WTO ruled the aid was “actionable” rather than “prohibited”, it backed Airbus's complaint that the majority of the aid benefited Boeing rather than Nasa or the US taxpayer.
Although the report was private, France's transport and environment ministers said in a joint statement last night: “This ruling brings enormous satisfaction to the French and European aviation industry and saves jobs and the future of this industry.”
In June, the WTO declared that European states paid illegal subsidies to Airbus, six years after Boeing initiated the world's biggest trade dispute by lodging a complaint.
A trade spokesman for the EU said that “only negotiations at the highest political level can lead to a real solution.”
Rainer Ohler, head of public affairs and communications at Airbus, added: “Now that two reports are on the table, time has come to stop assigning blame but rather assume responsibility. Only when we stop litigation and start negotiating will we be able to create a basis for the future level playing field in global aircraft manufacturing which is not just a transatlantic issue.”
Ohler added that the WTO “plays a role in assessing compliance of past actions” but “is not the right vehicle to determine policy for future government support for our industry”.
France's transport and environment ministers said the confidential WTO ruling delivered to US and EU officials in Geneva “condemns massive subsidies to Boeing that violate WTO rules.”


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