In a new round of the more than decade-long spat at the World Trade Organisation (WTO), the Appellate Body (AB) has today (4 September 2017) reversed a 28 November 2016 report which found that the Washington State tax subsidies that paid for Boeing’s development and manufacture of the 777 X aircraft were “prohibited” under the Agreement Subsidies and Countervailing Measures (ASCM).
However, an ongoing separate review in the DS353 case has confirmed that those subsidies are illegal and actionable causing massive harm to Airbus. An obligation for their withdrawal or removal of their adverse effects remains applicable.
In total, combining the different WTO’s rulings addressing the illegal subsidies to Boeing, the total impact of the subsidies is estimated to add up to US$ 100 billion in lost sales to Airbus.
Airbus reiterates its long-stated view that this transatlantic spat, which leads the WTO to a huge amount of serious work and a large number of important panel reports over many years, can only finally be resolved by negotiations aimed at finding a global agreement to come to a level playing field in government support for the large civil aircraft industry.
Airbus would like to take this opportunity to thank the European Commission and the governments of France, Germany, the UK, and Spain for their continued efforts to defend the industry and fair trade practices at the WTO.
“Boeing illegal subsidies are still illegal and need to be removed. If it is a “No” or a “No No” does not make big difference in global fair trade & play”
, says Rainer Ohler, Airbus Executive Vice President Communications.
“The “game” is far from over.”
While the legal procedures continue Airbus is providing a more playful perspective on the topic. Check out our new mobile app called “WTO Warriors” for iOS and Android devices, available on the AppStore and on GooglePlay”.
Our comment: See also Boeing’s reaction. Whatever the WTO rules, Boeing and Airbus will both claim victory. To be followed…