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Image header Agence Europe
Europe Daily Bulletin No. 10508
Contents Publication in full By article 17 / 34
EXTERNAL ACTION / (ae) trade

EU informs WTO of its plans for Airbus

Brussels, 02/12/2011 (Agence Europe) - The EU has submitted to the World Trade Organisation its plans to comply with the state aid ruling of the WTO following complaints by the United States. The Commission has sent the ball back to the US, which it hopes will introduce a wide range of measures to fall into line with the WTO ruling about subsidies from the US government to the Boeing aircraft manufacturer.

On Thursday 1 December, the European Commission sent the WTO and the United States a report setting out measures to fall into line with the WTO ruling on Complaint DS 316 lodged by the United States about illegal subsidies paid by Germany, France, the United Kingdom and Spain to European aircraft manufacturer Airbus. John Clancy, the spokesperson for EU Trade Commissioner Karel De Gucht, said the measures covered all the categories of subsidies, all forms of adverse effects and all models of Airbus aircraft covered by the WTO decision.

The Commission has sent the ball back to the United States. Clancy said in a press release published on Thursday afternoon that the Commission was awaiting an equally robust package of measures from the United States next year when the WTO decides on an appeal against the subsidies granted to US aircraft manufacturer Boeing (DS 353).

Ron Kirk, US Trade Representative, said that the United States would be carefully examining the Airbus measures before deciding on future action based on careful study of the report, and would be examining whether the EU has taken the measures needed to fully comply with the WTO ruling.

Boeing accuses its European rival, Airbus, of receiving €18 billion in illegal subsidies, a figure described by the EU as a figment of the imagination. The EU has lodged an appeal with the WTO against illegal state aid to Boeing and on 31 March 2011, the United States was found guilty by the WTO of paying at least US$5.3 billion in illegal subsidies between 1989 and 2006. (EH/transl.fl)

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