Fri, Mar 02, 2012
Boeing Rejects EUs Offer To Negotiate An End To Trade
Fight
The governments of the US and the European Union, in something
of a surrogate war on behalf of Boeing and Airbus respectively,
have both won findings in the World Trade Organization that some
forms of government subsidy violate trade treaties. Now, a
suggestion by Europe to negotiate an end to the battle has been
called laughable by Boeing.
AFP News reports that on Monday, Boeing spokesman Charlie Miller
told journalists the suggestion from Airbus that the differences
could be settled through negotiation is "risible." He added the
motive for the overture "is only too obvious when clearly they have
lost."
An Airbus spokeswoman responded by noting that the US "offered
to negotiate after unilaterally abandoning a 1992 agreement and
demanding the EU abandon its reimbursable advance financing."
Europe claims that defense development contracts, and even local
and state tax incentives to encourage the siting of new plants are
illegal subsidies. The WTO agreed in March of last year with some
of those charges, to the tune of $5.3 billion.
On the other side, the US attacked subsidies to Airbus,
including government payments which were called loans, but for
which repayment was waived, making them de facto grants. The
illegal subsidies to Airbus as determined by the WTO totaled $18
billion.
The findings allow governments on both sides to levy tariffs or
other sanctions to compensate for the imbalance. AFP reports a US
source close to the situation says Washington is likely to seek WTO
approval for sanctions against the EU "within the next few
weeks."
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