Brussels, 12/10/2012 (Agence Europe) - The EU is getting a group of experts at the World Trade Organisation to verify whether US aid for the Boeing aircraft builder complies with a 2005 WTO ruling on a complaint lodged by the EU, DS 353.
Echoing moves by the United States earlier this year in connection with their appeal against aid for Eeuropean aircraft builder Airbus (DS 316), the European Commission asked the WTO on Thursday 11 October to set up a special group to check whether Washington has taken the measures required in the ruling on the EU's appeal in March 2012 (see EUROPE 10572). On Thursday, the department of EU Trade Commissioner Karel De Gucht explained that recent consultations with the United States had been unsuccessful. De Gucht himself commented that by its action, the EU is ensuring that all its trading partners respect the rules of the game and that everything is done to establish fair competition for EU companies and workers.
On 25 September, the EU criticised the US compliance plan submitted the day before. If it is proved that the US is not complying with the WTO ruling, then the EU wants the country to be fined US$12 billion a year in trade sanctions (see EUROPE 10697 and EUROPE 10698). The EU's request will be examined by the WTO dispute settlement body on 23 October.
In March 2011, the WTO ruled that some US aid to Boeing, estimated to be USD 5.3 billion from 1989-2006, amounted to illegal subsidies under world trade rules. The European Commission says that at least US$3.1 billion of the aid to Boeing after 2006 from several public bodies, including NASA, the defence department and the state of Washington, is not allowed under WTO rules. (EH/transl.fl)