Dispute between Boeing and Airbus

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Dispute between Boeing and Airbus

Postby R_Head » 13 Oct 2016, 20:03

I wonder if this has some to do with the loss of Boeing sales in the Farnborough Air Show few months ago... :think:



13 October 2016


European Union files appeal against WTO compliance panel ruling on aircraft subsidies

The European Union filed a notice of appeal today, 13 October, challenging a WTO compliance panel’s findings in the dispute “European Communities and Certain Member States — Measures Affecting Trade in Large Civil Aircraft – Recourse to Article 21.5 of the DSU by the United States.” The compliance panel issued its report on 22 September.

https://www.wto.org/english/news_e/news ... ct16_e.htm

%This is the initial conplaint%

European Communities — Measures Affecting Trade in Large Civil Aircraft

Summary of key findings

The Appellate Body today upheld the Panel's finding that certain subsidies provided by the European Union and certain Member state governments to Airbus are incompatible with Article 5(c) of the SCM Agreement because they have caused serious prejudice to the interests of the United States. The principal subsidies covered by the ruling include financing arrangements (known as “Launch Aid” or “Member state financing”) provided by France, Germany, Spain, and the UK for the development of the A300, A310, A320, A330/A340, A330-200, A340-500/600, and A380 LCA projects. The ruling also covers certain equity infusions provided by the French and German governments to companies that formed part of the Airbus consortium. Additionally, it covers certain infrastructure measures provided to Airbus, namely, the lease of land at the Mühlenberger Loch industrial site in Hamburg, the right to exclusive use of an extended runway at Bremen airport, regional grants by the German authorities in Nordenham, and Spanish government grants and regional grants by Andalucia and Castilla-La Mancha in Sevilla, La Rinconada, Toledo, Puerto Santa Maria, and Puerto Real. The Appellate Body found that the effect of the subsidies was to displace exports of Boeing single-aisle and twin-aisle LCA from the European Union, Chinese, and Korean markets and Boeing single-aisle LCA from the Australian market. Moreover, the Appellate Body confirmed the Panel's determination that the subsidies caused Boeing to lose sales of LCA in the campaigns involving the A320 (Air Asia, Air Berlin, Czech Airlines, and easyJet), A340 (Iberia, South African Airways, and Thai Airways International), and A380 (Emirates, Qantas, and Singapore Airlines) aircraft.

Read a lot more...

https://www.wto.org/english/tratop_e/di ... s316_e.htm

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