EU says WTO confirms Boeing received 'billions' in US aid
(BRUSSELS) - The European Commission on Monday welcomed a WTO ruling in a dispute with Boeing, saying it confirmed billions of dollars in US subsidies to Boeing were illegal under WTO rules.
"Today's ruling vindicates the EU's long-held claims that Boeing has received massive US government hand-outs in the past and continues to do so today", said EU Trade Commissioner Karel De Gucht."
"The costs to EU industry from these long-term subsidies run into billions of euro," he added in a statement released in Brussels.
The response came as the United States took the opposite stand, saying the World Trade Organization decision confirmed that Europe's unfair trade subsidies to aircraft maker Airbus have dwarfed US aid to Boeing.
The European Union executive said the WTO's Appellate Body had rejected the US appeal and found that US Federal and State governments granted between $5 and $6 billion of WTO-incompatible subsidies to Boeing between 1989 and 2006.
"Subsidies to be granted after this date are estimated to be at least $3.1 billion," a Commission statement said.
"This landmark ruling clearly shows the US has used an unlawful way of supporting business that has stood in the way of fair competition," De Gucht added. "The US should now put an end to such harmful subsidies."
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A touchinig one sided story
What youre not seeing dear EU reader is this:
The WTO Appellate Body ruling released on Monday confirmed that the magnitude and effect of U.S. government support to Boeing is minimal compared to the $18 billion in illegal subsidies European governments have provided to Airbus.
U.S. Ambassador Ron Kirk characterized the decision as “a tremendous victory for American manufacturers and workers,” adding that the U.S. government “is ready to address all of the WTO findings, and we expect Europe to do the same.”
Boeing said it is prepared to work with the U.S. Trade Representative as it determines what steps are necessary to address Monday’s WTO’s decision and expressed disappointment that Airbus has not shown the same commitment to compliance.
The WTO issued its final ruling last June against launch aid and other illegal European subsidies to Airbus, but EU governments have yet to comply.