WTO judges say intercontinental trade laws and regulations were busted by Boeing

New airlines are taking a hit when no longer expanding fleets. This is because one of the greatest things hit economically during the global economic downturn was airline travel. Boosting the net income is something numerous aircraft manufacturers are focused on right now which may mean the corporations have to take large subsidies from the government. 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 reason. The $20 billion in subsidies is being challenged by the European Union, according to sources.

WTO pointing toward Boeing and Airbus

There can be no official release until mid-2011 of WTO’s ruling against Boeing as it is confidential. It has been released to United States and European Union officials, nevertheless. Some of the findings within the case have been appealed already. The appeal came from both Boeing and Airbus. Reuters suggests that if original records of the WTO ruling are accurate, a negotiated settlement between Boeing and Airbus may occur, as the current state of relations in transatlantic aerospace travel is cold at best. Airbus was previously condemned in June 2010 for taking a sizable money advance in the form of a government subsidy from the EU.

There are some research contracts and tax breaks going on

It is like we are playing with kids. One kid seems upset that an additional kid is attempting to do what he got in trouble for a couple of days ago. According to European sources, Boeing took $17 billion in research contracts from National Aeronautics and Space Administration and also the Pentagon, and loved $4 billion in tax breaks from the corporation’s home state of Washington. The World Trade Organization said that Boeing broke intercontinental trade laws. Even though it is not technically prohibited to get government aid, taking the contracts and tax breaks was wrong. Airbus was glad that it could get Boeing in trouble for what it was doing. Boeing thought that what is being done to them is rude. It thinks it was not doing anything wrong with the contracts.

Hope that President Obama take part

EU trade spokesman John Clancy told Reuters that “negotiations at the highest political level” could be the only action that will lead to a long term solution to the feud between Boeing and Airbus. U.S. officials have claimed they won’t come to the table until the EU no longer subsidizes the production of the Airbus A350. The U.S. thinks that what the WTO ruled against is the exact same thing the EU is doing. In a statement to the press, Boeing maintained its position that they have done nothing to distort the transatlantic aerospace market when continuing to point fingers at EU practices with Airbus.

Find more information 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