WTO Authorities rule Boeing broke international trade laws and regulations

Airline travel is severely harmed with the global recession which is why expanding fleets for new airlines is no longer a thing requested. Large government subsidies are accepted by aircraft producers that are trying to boost the net income in any way possible. Reuters explains what the World Trade Organization (WTO) ruled with regards to the American airline manufacturer, Boeing. Boeing was said to have an unfair edge on European competitor, Airbus, because it took out the government subsidies specifically for this purpose. The European union challenged the $20 billion in subsidies.

Boeing and Airbus get the finger pointed toward them by WTO

It is said the World Trade Organization ruling against Boeing is confidential. It won’t be released to the public until sometime in 2011. It is released to some of course. United States and European officials were able to see it. It is also known that both Boeing and Airbus have appealed various findings in the case already. Reuters explains that relations between aerospace travel within the transatlantic are bad right now. This is why it is weird the WTO ruling may mean Boeing and Airbus may have to come up with a settlement. Airbus was previously condemned in June 2010 for taking a sizable money advance in the form of a government subsidy from the EU.

You will find some research contracts and tax breaks going on

It is like we are playing with kids. One kid seems upset that one more kid is intending to do what he got in trouble for a few days ago. NASA and also the Pentagon gave Boeing $17 billion in research contracts. Also, It got a sweet tax break in Washington State of $4 billion, says European sources. Even though technically there is no rule about accepting government aid, the WTO said international trade laws and regulations were broken when accepting the tax breaks and government contracts. Airbus was glad that it could get Boeing in trouble for what it was doing. Thus, Boeing felt their actions in accepting government subsidies were acceptable.

Getting President Obama to help

EU trade spokesman John Clancy told Reuters that “negotiations at the highest political level” will be the only action that will lead to a long term solution to the feud between Boeing and Airbus. United States of America officials have claimed they will not come to the table until the EU no longer subsidizes the production of the Airbus A350. The United States thinks that what the World Trade Organization decided against is the very same thing the EU is doing. Boeing said that Airbus is doing anything wrong with the EU although Boeing is doing nothing to hurt the transatlantic aerospace market.

Find more info on this subject

Airbus

airbus.com/

Boeing

boeing.com

Reuters

reuters.com/article/idUSTRE68E47T20100915

WTO and Boeing have had better days

youtube.com/watch?v=50fqfmWbXiY