The World Trade Organization has finally passed judgment on the legitimacy of more than $200 billion in European loans to Airbus for six separate aircraft programs. But, still, the outcome remains somewhat ambiguous, as Airbus and Boeing each claimed some measure of victory in the now six-year-old dispute.
World Trade Organization
Despite the partisan claims and counter-claims on both sides of the long-running dispute over alleged subsidies between Airbus and Boeing, it remains extremely unclear whether or not the World Trade Organization (WTO) will ever definitively resolve the issue.
The World Trade Organization (WTO) any day now plans to issue an interim ruling on U.S. allegations over unfair subsidies made by European governments to Airbus.
Heartened by a recent WTO ruling against Canada for its support of Bombardier CRJ sales, Brazil’s Embraer has now turned its attention to its European competition, accusing the German government of illegally subsidizing the development of Fairchild Dornier’s 728 and 928 programs.
The World Trade Organization ruled that $1.13 billion in low-interest loans issued through Canada’s Export Development Corp. to support the sale of 51 Canadair Regional Jets to Appleton, Wis.-based Air Wisconsin constitutes an illegal government subsidy. An interim WTO report, issued last month in response to a formal protest by the government of Brazil, calls for the withdrawal of the loans.
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