Trade laws broken by Boeing, says World Trade Organization judges

Airline travel has taken a huge financial hit during the global recession, which in turn has decreased demand for new airliners to expand fleets. Thus, aircraft producers are willing to turn to any means necessary in order to boost the net income, including accepting large – and perhaps questionable – government subsidies. Reuters explains what the World Trade Organization (WTO) ruled with regards to the American airline manufacturer, Boeing. Boeing was said to have an unfair edge on European competitor, Airbus, because it took out the government subsidies specifically for this reason. The European Union is challenging the subsidies. The business actually received $20 billion. Article source – WTO judges rule Boeing broke international trade laws by Personal Money Store.

WTO points out what’s going on with Boeing and Airbus

The WTO judge’s ruling against Boeing is presently confidential and will not be officially released until mid-2011. It is released to some of course. United States and European officials were able to view it. Some of the findings within the case have been appealed already. The appeal originated from both Boeing and Airbus. The World Trade Organization ruling showed that since relations in transatlantic aerospace travel is really bad right now, there may nevertheless be a settlement negotiated between Boeing and Airbus, says Reuters. Airbus was previously condemned in June 2010 for taking a sizable money advance within the form of a government subsidy from the EU.

There are some research contracts and tax breaks going on

It is like we are playing with kids. One kid seems upset that an additional kid is attempting to do what he got in trouble for a couple of days ago. European sources explain that in Washington state, Boeing got $4 billion in tax breaks when also getting $17 billion in research contracts from National Aeronautics and Space Administration and the Pentagon. WTO ruled that Boeing broke international trade laws by accepting the contracts and tax breaks, despite the fact that the government aid is not technically prohibited. Airbus was glad that it could get Boeing in trouble for what it was doing. Boeing thought that what is being done to them is rude. It thinks it was not doing anything wrong with the contracts.

Hope that President Obama take part

EU trade spokesman John Clancy told Reuters that “negotiations at the highest political level” could be the only action that will lead to a long term solution to the feud between Boeing and Airbus. United States of America officials have claimed they will not come to the table until the EU no longer subsidizes the production of the Airbus A350. The U.S. thinks that what the World Trade Organization decided against is the very same thing the EU is doing. Boeing claims it has done nothing to harmed the transatlantic aerospace market. It does say, nevertheless, that Airbus with its EU practices isn’t following the same ideas.

Find more details on this subject

Airbus

airbus.com/

Boeing

boeing.com

Reuters

reuters.com/article/idUSTRE68E47T20100915

WTO and Boeing have had better days

youtube.com/watch?v=50fqfmWbXiY