Political Science

U.S.-EU Aircraft Subsidies Dispute

U.S.-EU Aircraft Subsidies Dispute

Overview of the dispute

In 1992, the EU and the U.S., went through a bilateral agreement, regulating government support for large civil aircrafts. The United States announced this agreement in October 2004 on one side and started WTO dispute procedures. On 30 June 2010 published the final report of the WTO Airbus panel, which began its work in 2006, represents the end of the first phase of the litigation with the opposition represents the EU now begin the second phase of this litigation.

The WTO dispute settlement process provides for a possibility of appeal to correct legal errors of the panels," said EU Trade Commissioner Karel De Gucht. This dispute is quite important and to let the legal misinterpretations of the panel pass would be devastating. It would also waive any objection to create anything but a helpful precedent for the WTO members. (Mcguire, 1997).

The U.S. might now in some areas, they have lost, also appeal. Washington has called for Wednesday a meeting of the WTO panel, by which time Europe had to submit his appeal in Geneva. The WTO report may not now be formally adopted. The Appeal Court has now actually 90 days for a decision. From EU sources said, however, the deadline will probably be significantly exceeded. Both sides accuse himself, unfairly subsidizing Airbus and Boeing. In both cases, processes are running at the WTO. A three times already shifted to Boeing WTO Interim Report is expected in mid September. "We have made clear that we expect that this was the last postponement," said EU staff.

Arguments of EU and the countries involved

In the dispute over billions of subsidies to aircraft manufacturers Airbus and Boeing is challenging the EU on the recent ruling of the World Trade Organization (WTO). The Commission appealed against a large part of the final report of 30 June appealed. From EU sources said, the committee had made "errors of law" and "interprets facts wrong.

The Commission will, among other things cannot be considered that part of the initial funding for the United States A380 pilots were said to be illegal export subsidies and the blanket conclusion that aid for Airbus to have damaged the U.S. arch-rival Boeing. 

Five years after the start of the WTO negotiations on state aid for aircraft manufacturers, in September 2009 the involved parties in an interim report. The focus of the report is granted to particularly favorable terms for the development of new models such as the A380.

Similarly, the classification is rejected as subsidies for infrastructure measures by the EU Member States. Airbus to pay market rent standard. These include the extension of country lanes or the filling in Hamburg. EU Trade Commissioner Pascal Lamy and his U.S. counterpart Robert Zoellick expressed with harsh words, after the EU and the U.S. had filed suit against each other at the WTO because of subsidies to Airbus and Boeing. The U.S. has effectively ended a 1992 civil aircraft agreement, specifically covering governmental support for the two top aircraft manufacturers Airbus and ...