Airbus might have to seriously consider alternative means of financing development of the A350 if the German government withholds loans of €600 million ($787 million) for the project, as reported in the German press. Airbus won’t comment, nor will German government officials, but any such development would force parent company EADS to defer to its plan to use its own funds rather than accept political influence over its decisions on work share or production locations.
World Trade Organization
Governments on opposite sides of the Atlantic remain at loggerheads over subsidies to their respective aerospace industries following a European Union rebuke last week of a U.S. claim that it has met a World Trade Organization deadline to withdraw illegal support to Boeing.
The antagonists in the long-running trade dispute over government subsidies to Boeing and Airbus are awaiting World Trade Organization (WTO) comment on the latest U.S. call for sanctions against the European Union.
The World Trade Organization (WTO) has rejected much of Airbus’s July 2010 appeal against its ruling that the European airframer has unfairly benefitted from subsidies, but its May 18 judgment still leaves plenty of scope for the protagonists to argue over how it gets interpreted.
Neither the U.S. nor the European sides are giving an inch in the prolonged legal, political and public relations battles over allegedly illegal aerospace subsidies. The World Trade Organization’s March 31 ruling on Airbus’s complaint about alleged subsidies to Boeing has already prompted an indignant European Union to appeal on the grounds that it doesn’t sufficiently damn U.S. conduct. As of press time, the U.S.
The Office of the United States Trade Representative (USTR) yesterday appealed to the World Trade Organization (WTO) Appellate Body two findings in the panel report on European subsidies (EU) to Airbus in late June. In its appeal, the U.S.
Boeing and Airbus each declared a measure of victory today following a World Trade Organization (WTO) ruling that deemed illegal European launch aid for large aircraft programs. The report, made public earlier today, also declares that a “broad array” of government funding for Airbus research and infrastructure development violated international trade agreements.
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