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By Jim Douglas |
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September 16, 2010
- Boeing has continually protested over "launch aid" and other forms of
government aid to Airbus, while Airbus has argued that Boeing receives
illegal subsidies through military and research contracts and tax
breaks.
In July 2004
former Boeing CEO Harry Stonecipher accused Airbus of abusing a 1992
bilateral EU-US agreement providing for disciplines for large civil
aircraft support from governments.
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Airbus claimed
that since the signature of the EU-U.S. Agreement in 1992, it has repaid
European governments more than U.S. $6.7 billion and that this is 40%
more than it has received.
Airbus further
claimed The significant
In January 2005
the European Union and |
Boeing on
Wednesday (September 15, 2010) released the following statement,
responding to public reports indicating that the WTO panel examining
European Union allegations of
"If today's
reports are accurate that some $3 billion of the EU's claims were upheld
by the WTO, excluding the claims that relate to past programs long ago
remedied by Congress, then the ruling amounts to a massive rejection of
the EU case and confirms that European launch aid to Airbus stands as
the single largest and most flagrant illegal subsidy in the aerospace
industry.
"Nothing in
today's public reports on the European case against the U.S. even begins
to compare to the $20 billion in illegal subsidies that the WTO found
last June that Airbus/EADS has received (comprised of $15 billion in
launch aid, $2.2 billion in equity infusions, $1.7 billion in
infrastructure, and roughly $1.5 billion in targeted research support).
"Nor are there
seemingly any violations requiring remedy approaching the scale of
remedy required of Airbus/EADS as a result of the WTO's June ruling that
European governments must withdraw and remedy the $4 billion in still
outstanding illegal launch aid subsidies that Airbus/EADS received for
the development of its A380.
Billions must be repaid or restructured on proven commercial
terms. And, equally, they must remedy the adverse effects of the other
$16 billion in illegal subsidies, too.
"Neither do the
public reports suggest that Boeing's traditional market based approach
to financing new aircraft development will need to change; a distinct
contrast to the requirement that Airbus/EADS abandon its plans for
financing development of new models such as the A350 through launch aid
subsidies.
"Given the shape
of today's opinion, as it has been reported, the WTO findings against
the
"Today's ruling
underscores our confidence in the WTO processes and dispute-resolution
procedures. We applaud the body for its work and continue to look to
Airbus/EADS and the EU to recognize that in today's global market, it is
essential that everyone play by the rules and abide by the WTO
requirements. Playing by the rules, for Airbus/EADS, means withdrawing
their still-outstanding A380 prohibited launch aid subsidy and financing
the A350 on commercial terms." |
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