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EU/US

WTO delays Boeing ruling

By Chiade O’Shea | Friday 09 July 2010

The World Trade Organisation has delayed ruling on the United States’ support for Boeing, prompted by the EU’s accusations that it contravenes international trade rules, from 16 July to mid-September. The European Commission, on 8 July, condemned the delay, expressing frustration that a parallel ruling against Boeing’s European rival aircraft manufacturer Airbus was published on 30 June leaving the public with only “half the story” in the tit-for-tat spat.

The interim report on Boeing (dispute settlement case DS 353) is the result of months of work by a panel of WTO experts, whose findings were initially to be released confidentially only to the affected parties before being made public after translation and further legal draft checks. But as with the similar case against Airbus (dispute settlement case DS 316), the main findings were expected to be widely leaked to the press. The delay was also supposed to be confidential, but was confirmed by the EU after it was announced in Washington DC.

Lashing out at the delay, the European Commission said that it “creates the wrong impression that Airbus has received some WTO-incompatible support, whereas Boeing has not”. The statement continued: “Only when we have received both panel reports will both sides have a more complete picture of the dispute”. The Commission lamented that any delays would make a negotiated settlement less likely.

The WTO ruled illegal certain aid measures granted by European governments to Airbus, notably the low rate they charged for loans called ‘repayable launch investment’ by the EU and ‘launch aid’ by the US, in the report made public in June 2010. Both the US and the EU, however, claimed victory as some of the wide range of accusations made by the US were accepted and others rejected. n



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