WTO Appeal of EU v Boeing issued, in secrecy

The dual appeal of the WTO Panel Findings in the European Union’s complaint against illegal subsidies provided Boeing for its commercial airplanes program has been issued, but it remains under wraps until March 12 to allow the parties to review it and request commercial sensitive information be deleted from the public version.

The WTO Panel found Boeing received more than $5bn in illegal subsidies. The key ones are grants from NASA and the Department of Defense, but tax breaks provided by the State of Washington–amounting to $3.2bn over 20 years–also were found to be illegal.

The EU and the US Trade Representative each appealed the Panel findings. The EU wanted to start the clock on the countdown to Boeing compliance as well as seeking reconsideration of complaints rejected by the Panel. The US appealed some of the findings of the Panel that found Boeing received illegal subsidies.

Leaks from both sides are expected in advance of the March 12 public release.

We expect the core of the Panel’s findings–that grants to Boeing are illegal–to be upheld. We also expect that the tax breaks granted by Washington State (as well as Kansas) will also continue to be held as illegal.

Stories by AFP and Reuters were first off the mark.

Boeing had contended throughout the process that Airbus had received more than $200bn in illegal aid, a figure Boeing claimed includes interest expenses. The WTO found only $18bn in aid was provided Airbus. The original WTO panel found $5bn in illegal aid to Boeing. The Appeals panel could lower or raise the Boeing figure. The Reuters article has some detail on the disputed amounts in the Boeing appeal.

22 Comments on “WTO Appeal of EU v Boeing issued, in secrecy

      • European Union and WTO . From Igiri Basil Umeh. We can recognise the promise of airbus A380 for Doha Round of trade negotiations.But aid for trade is no substitute for market opening opportunity and improved rules promised by Doha. A Doha Round adopted millennium development size fits new deal “Shanghai’s export hub. China,India and several Asia emerging economic are ramps up their domestic industries through heavy state of economy. But Doha round is from Bombay India.

  1. The original Aerospace B&O incentive in 2003 had language (Olympus contract, section 10.4) that Boeing would be made whole in the event an international tribunal decided the subsidy violated a trade agreement.

    • European Union and WTO to airbus a380 tariffs for Doha Development Agenda. Doha Round of trade negotiations is private sector business and undertake by Igiri Basil Umeh of Nigeria.

  2. I wasn’t aware that the State of Washington was a signatory to the WTO.

    In any event, the subsidies that Boeing received from Washington were available to any aerospace manufacturer who located a facility within the state.

    • It’s a little more complicated than that.

      First, many states, including Washington State, have in fact, bound themselves to provisions of various free trade agreements. The wisdom and legitimacy of this are a little shadowy.

      Second, trade tribunal decisions are normally enforced by applying sanctions to the country found at fault, not to the products found at fault. The sanctions are typically designed for maximum political pressure, and may have nothing to do with the original products involved in the dispute. In practice, this is all, one hundred percent, political in nature.

      But most importantly, the Olympus contracts put Washington State on the hook, if, *for any reason* the tax incentives are ruled out.

      Your argument about incentives being available to any producer was not persuasive to the tribunal. Hence the finding(s) against Boeing.

      • “Your argument about incentives being available to any producer was not persuasive to the tribunal. Hence the finding(s) against Boeing.”

        Actually the WTO ruled against the WA State incentives for the reason you mention but because it was “industry-specific” (i.e., aerospace) that violated the WTO rules–as well as provisions tied directly to sites that just happened to be Boeing. We find it odd that an industry-specific tax break is illegal but then we find the whole of WTO to be a dumb idea.

      • The issue is whether the subsidy is “specific”, ie whether one party gets a specific advantage from it. It has a precise definition. Everyone knows the reduced B&O rates in Washington State were designed especially for Boeing but it was done in such a way that in theory others could benefit too.

        The WTO says that the WTO the reduced B&O rates are specific subsidies because aerospace is the only major industry to benefit and the rates were changed as part of the 787 negotiations. The timing is important to their decision. Of course the Appeal Panel may come to a different conclusion.

        It seems the parties are much more subdued in their spin this time round. The first time round the parties were quick to grab the airwaves.

    • I seem to remember wording that though it appeared unspecific there invariably were
      limitations ( like for developing a commercial airliner with 211 to .214 seats or something similar ) that made these moneys available to a single entity for a select product.

    • European Union and WTO for airbus a380 . Igiri Basil Umeh and European EU/WTO to built bilateral trade agreement for Doha Development Agenda.

  3. European Union and WTO production process are so globalized that a country’s import tariffs could well penalize imports from one of its own global companies.

  4. Airbus Director and WTO. We agreed that only Doha Round of trade negotiations can suit airbus a380/a350 to global trading. World Trade Organization(WTO) now control our economy,fate and the future. The fate of the so-called Doha…Under rubric of much vaunted millennium development goals(MDGs) and inclusive millenium globalization development model(heavy paradise)will start will start at poorer region of Africa-Abakaliki,Nigeria.

  5. European Union and WTO airbus production company requires standard bilateral trade agreement which convey powerful ambitious transaction and development with land mass and free zone or area.

  6. European Union & WTO to understanding the nature of airbus future trade,growth and development . WTO and GATT have already know what need to be done.

  7. Only Doha Development Agenda(DDA) can push airbus to normal trading.leeham Doha Round of trade negotiations collect 98 percent of global trading in the twenty first century.

  8. Leeham “.WTO appeal of European Union v Boeing issued.European Union …Igiri Basil Umeh have undertake Doha Round of trade negotiations as private sector businss.Doha Round will continue to upheld principle of equality and mutual benefit in its cooperations with airbus and EU.

  9. European Union and WTO to rethink about the future of airbus production in the twenty first century.It is because of its sense and behaviour of responsibility to share its thinking and work together with general public both EU/WTO/GATT and Airbus company.

  10. Doha Round of Trde negotiations undertake by Igiri Basil Umeh. Airbus production company has gradually enriched the content of development by stressing not only speed,but also quality. What does Doha Round mean to the rest of the world. Doha Round has tremendously increase its economic volume and comphensive power .

  11. EU & WTO to finalize everything concern Doha Round with Igiri Basil. I will like to take this opportunity to share my personal idea on Doha Round. Before goig to first one ,i would like to mention a famous saying that when when the leadership is right and the time is right. Airbus director to finalize everything with Igiri Basil Umeh for Doha round .It is believe that only development in such a scientific way could transform the economic growth into rationize economic ,social relations and prosperous social undertaking.

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