Brussels, 01/02/2011 (Agence Europe) - Although the final report by the WTO on the EU's complaint over United States aid to Boeing (DS 353) has yet to be revealed, the European Commission has hailed a ruling which upheld criticism by the WTO in June 2010. In the European Parliament, French Socialist MEP Kader Arif, who has been involved in this case, has urged Washington to engage in dialogue with Brussels.
“We welcome the WTO panel's confirmation of its initial findings regarding the support provided to Boeing by the US government. This solid report sheds further light on the negative consequences for the EU industry of these US subsidies and provides a timely element of balance in this long-running dispute”, said John Clancy, spokesman for European Trade Commissioner Karel De Gucht, on Monday. On 31 January, the WTO delivered its final report on public aid granted by the United States to aeroplane maker Boeing, which European competitor Airbus believes to be illegal. Under WTO rules, the conclusions have to remain confidential for several more weeks. This is the second part of the most complex case the Geneva-based organisation has had to deal with, after it delivered its conclusions on a US complaint against European aid to Airbus (DS 316), which was declared “illegal” by the WTO.
The EU estimates that Boeing received hidden subsidies amounting to $24 billion which resulted in commercial damages of $45 billion for Airbus between 2004 and 2005. Over and above the range of tax and social exemptions granted to the US constructor, the key issue in the WTO ruling concerns arrangements for the aid to Boeing from NASA and the US Defense Department through R&D programmes.
Though everyone expects both parties to appeal against this latest ruling, just as was done for the decision handed down in June, the transatlantic partners have been summarily dismissed and told to find a negotiated solution - something that MEP Arif has called for. “With its $5 billion dollars in illegal subsidies … the Boeing 787 Dreamliner has just won the title of the most heavily subsidised aeroplane in the history of aviation. The WTO has set the record straight, with its clear and firm verdict on the system of subsidies paid to Boeing. It is time for our American friends to stop trying to discredit Airbus when the WTO has never cast any doubt over the system of repayable advances put in place to finance the European aeroplane constructor in a legal and transparent manner”, he said, going on, “The United States has to demonstrate a sense of responsibility and quickly engage in dialogue with they EU. In a context of increased competition, a new EU-United States agreement will mean that we can all move forward and restore fair and transparent competition conditions and public support appropriate to the aviation industry”. (E.H./transl.rt)