WTO rules Airbus got subsidies illegally, Boeing damaged

[babylonsister]

http://www.mcclatchydc.com/227/story/74936.html

WTO rules Airbus got subsidies illegally, Boeing damaged

By Les Blumenthal | McClatchy Newspapers


WASHINGTON — Boeing won a major victory Friday when the World Trade Organization ruled that its longtime rival, Airbus, has received billions of dollars in illegal subsidies from four European governments, according to Rep. Norm Dicks, D-Wash.

The ruling came in a 1,000-page confidential preliminary report from the WTO in what's considered the largest and most complicated trade dispute ever.

"Not only did they rule the subsidies were illegal, they ruled they have caused material harm to Boeing," Dicks said.

While the ruling focused on subsidies for Airbus' superjumbo A380, it also found that aid provided by the Europeans benefited every model the company produced, Dicks said.

Though a final report still has to be issued and an appeal is expected, the U.S. eventually could impose retaliatory tariffs on European goods. While that's considered unlikely, the ruling could crimp Airbus' finances seriously as the world's airlines are expected to order an estimated $3.2 trillion in new planes over the next 20 years.

[Mudoria]

1. Excellent news

[IDFbunny]

2. Poor management of the 787 has damaged Boeing.