WTO rules 'Boeing got huge illegal aid'
European planemaker Airbus said Monday that the World Trade Organization had confirmed that its US rival Boeing received "massive and illegal government subsidies for many decades''.
Earlier, the WTO confirmed it had handed a confidential ruling on the dispute to the United States and the European Union, parties to a seven-year battle over state aid to the world's top two civil aircraft firms.
"Today's World Trade Organization decision confirms Boeing has received massive and illegal government subsidies for many decades, and they have had a significant and ongoing negative effect on European industry,'' Airbus said.
Airbus has received loans from European states to help it compete in the airliner market, but claims Boeing received far larger support in the form of cash from the Pentagon, NASA and the state of Washington.
"The WTO can be expected to say that the billions in subsidies benefiting Boeing have a significantly greater distortive effect than the Reimbursable Loans to Airbus,'' the European firm's statement said.
"Airbus estimates at least $45 billion as a realistic figure based on identified lost sales to Airbus as a result from the subsidies,'' it said, claiming Boeing would not have been able to develop its 787 jet without aid.
Under WTO rules, the governments are supposed to keep the terms of the ruling secret for three months, but Airbus' statement reflected claims made by the European Union and praised the bloc's work.
The statement claimed the WTO had rejected Boeing's claim Airbus's loans amount to effective state subsidy, claiming "the WTO will be seen to now have specifically green-lighted the continued use of loans in Europe.''
While not giving the details of the ruling, the European Commission said the probe found that Boeing's receipt of research and development funding from US government bodies had had "negative consequences'' for Airbus.
"Airbus applauds the excellent result achieved by the European Commission and the member states,'' said Rainer Ohler, Airbus' head of public affairs.
"From today, Boeing can no longer pretend that it doesn't benefit from generous and illegal state subsidies. It has been doing so from the start and it's time to stop the denial,'' he said.
"The myth that Boeing doesn't receive government aid is over and we hope this sets the tone for balanced and productive negotiations going forward.''
The Geneva-based trade referee is already hearing an appeal by both sides against another ruling last June that partially upheld a US complaint over 18 billion dollars (13.1 billion euros) in EU subsidies for Airbus.
Credit: Bangkok Post (www.bangkokpost.com)
No comments:
Post a Comment