European plane maker Airbus is gleeful that Monday’s report from the World Trade Organization (WTO) Appellate Body (DS353) confirms and even extends previous WTO findings.
The Report confirms the existence of illegal US subsidies to Boeing – previously identified by the WTO as “at least US$5.3-billion” and extended by billions of US dollars as a result of today’s decision – resulting in an estimated loss of approximately US$45-bn in sales for Airbus. Despite earlier Boeing claims that only minimal actions to comply with WTO rules were necessary, it has become clear today that Boeing will have to make major changes to comply with this final WTO ruling.
“The Appellate Body has now spoken in both the Airbus and Boeing cases,” said Rainer Ohler, Airbus’ head of public affairs and communications.
“Comparing the core claims made by both sides, the net outcome is clear:
Boeing’s cash grants are fundamentally illegal, while the system of loans to Airbus by European governments is legal and may continue. Boeing and the US now will have six months to implement the WTO decision.”
Moreover, Monday’s decision is a broad repudiation of the US’s arguments in this case – rejecting every single US appeal regarding the subsidies given to Boeing and nearly all of its appeals as to the competitive harm that those subsidies impose, while accepting every single EU point of appeal.
