WTO Says Government Involvement In Airbus Gave It An Unfair Advantage

In a written statement late last week, Aerospace Industries Association President Marion Blakey said the WTO made the correct ruling concerning government subsidies provided to Airbus as they relate to the Aerospace Industry. The statement reads, in full:

"AIA welcomes the World Trade Organization ruling today as reported in the press that the European government's launch aid to Airbus is not consistent with its rules. This is a positive action to help ensure the long-term health of the global aerospace enterprise. While preliminary, the ruling provides much-needed guidance to WTO members that are involved in or considering entering into civil aircraft production.

AIA has long supported the U.S. government's efforts to resolve this matter through the WTO dispute resolution process. Today's ruling is an important step toward achieving a level and fair playing field that will allow the U.S. aerospace industry to flourish in the international marketplace."

Reuters reports that a leaked confidential report from the WTO to U.S. and European anchorites indicates that the United State' primary complaint is valid, and that the organization "overwhelmingly" finds that some of the European loans were "actionable" subsidies that harmed Boeing. The investigation has been going on 5 years. The sources said some members of Congress were briefed Friday on the matter.

However, the U.S. claim that the overall use of European loans was an invalid program of support in its own right was dismissed by the WTO.

Official findings are not expected to be released for several months.

Founded in 1919, the Aerospace Industries Association represents the nation's leading manufacturers and suppliers of civil, military, and business aircraft, helicopters, unmanned aerial systems, space systems, aircraft engines, materiel, and related components, equipment services, and information technology.

FMI: www.aia-aerospace.org, www.wto.org