Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Boeing, Airbus battle ahead of fresh WTO aircraft ruling

GENEVA, Jan 31, 2011 – The WTO is expected on Monday to deliver a ruling to the United States and the EU on part of their long-running dispute over multibillion dollar aircraft industry subsidies.

The confidential ruling on a European complaint against an alleged 24 billion dollars in public aid for Boeing was last week dubbed an "important milestone" by the company\’s vice president for trade policy Ted Austell.

Washington and the 27-nation European bloc have been engaged in a tit-for-tat battle over subsidies for large civil aircraft since 2004.

The World Trade Organisation is already hearing an appeal by both sides against another ruling last June that partially upheld a US complaint on 18 billion dollars (13.1 billion euros) in subsidies for Airbus.

Sources on both sides of the fence expect the WTO panel of arbitrators\’ latest verdict on aid for Boeing to be handed over to the two governments on Monday around 1530 GMT.

Under WTO rules, both sides are meant to keep it under wraps for about three more months.

Following interim findings released to the two sides last September, Airbus expects the WTO to award the European Union 45 billion dollars in compensation over "illegal aid" for its US rival.

Boeing last week rejected that claim as "simply ridiculous, as the two rivals continued their war of words.

Austell nonetheless accepted that the interim findings did show that some US support breached the rulebook, although the amounts are disputed.

Advertisement. Scroll to continue reading.

A key issue in the EU complaint is state support for Boeing\’s military aerospace research and development, and its impact on civil aircraft production.

Trade insiders believe that the WTO dispute settlement panel will again fault both sides to varying degrees, prompting claims of vindication from Washington and Brussels and a renewed round of appeals.

"Both sides continue to see exactly what they want to see," said Richard Aboulafia, a vice president at Teal Group analysts.

"They won\’t stop creating national aircraft with government money," he added, pointing out that a defending country could change its method of support to fall in line.

Not all subsidies or public aid are illegal under WTO rules, which seek to stop those distorting international trade.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...