Evil_Maniac From Mars
09-04-2009, 20:10
BBC (http://news.bbc.co.uk/2/hi/business/8237317.stm)
WTO 'rules EU plane aid illegal'
The World Trade Organization (WTO) has reportedly ruled that the European Union gave illegal subsidies to planemaker Airbus.
The Wall Street Journal and several news agencies reported the decision, which is officially confidential.
But Reuters reported that an EU source said it was "wrong and misleading" to describe the ruling as a US victory.
Both US and European diplomats have declined to release the ruling, which is over 1,000 pages long.
The trade dispute between the aircraft manufacturers, Boeing in the US and Airbus in Europe, is the biggest in the WTO's history.
The ruling comes after five years of deliberations. The decision is not expected to be officially made public for at least several months.
"The ruling is not a black-and-white case," an unnamed EU representative told Reuters.
"It simply is not a great victory for the United States."
The EU has also made a counter claim against the US for its support of Boeing. A ruling on the EU's claim against the US is due in the next six to eight months.
'Good case'
Experts say the WTO's decision will set the boundaries for acceptable government funding in civil aviation.
But Howard Wheeldon, senior strategist at BGC Partners, said there was still a long way to go in the saga.
"This whole WTO process is going to last four to five years. It's going to be 2013 at least before we get a final settlement on this," he said.
He added that Boeing and Airbus have to find terms so that they can work together based on what the WTO actually rules.
Louis Gallois, the chief executive of Airbus's parent company EADS, said before the decision that he believes the company has a "very good case".
Thoughts?
WTO 'rules EU plane aid illegal'
The World Trade Organization (WTO) has reportedly ruled that the European Union gave illegal subsidies to planemaker Airbus.
The Wall Street Journal and several news agencies reported the decision, which is officially confidential.
But Reuters reported that an EU source said it was "wrong and misleading" to describe the ruling as a US victory.
Both US and European diplomats have declined to release the ruling, which is over 1,000 pages long.
The trade dispute between the aircraft manufacturers, Boeing in the US and Airbus in Europe, is the biggest in the WTO's history.
The ruling comes after five years of deliberations. The decision is not expected to be officially made public for at least several months.
"The ruling is not a black-and-white case," an unnamed EU representative told Reuters.
"It simply is not a great victory for the United States."
The EU has also made a counter claim against the US for its support of Boeing. A ruling on the EU's claim against the US is due in the next six to eight months.
'Good case'
Experts say the WTO's decision will set the boundaries for acceptable government funding in civil aviation.
But Howard Wheeldon, senior strategist at BGC Partners, said there was still a long way to go in the saga.
"This whole WTO process is going to last four to five years. It's going to be 2013 at least before we get a final settlement on this," he said.
He added that Boeing and Airbus have to find terms so that they can work together based on what the WTO actually rules.
Louis Gallois, the chief executive of Airbus's parent company EADS, said before the decision that he believes the company has a "very good case".
Thoughts?