WTO rules against Airbus over subsidies but Boeing isn’t in the clear

Back in 2011 the US Government took a case to the World Trade Organization, claiming Airbus received subsidies from EU member states launching the A380 and A350.

The WTO ruled in 2014 that this was true. The EU appealed on behalf of Airbus who claimed this had stopped by 2011.

Yesterday the WTO ruled against Airbus again, but it dismissed many of the accusations as resolved. This in effect opens the way for the US to impose tariffs on Airbus imports – in effect only the A350- which only affects one airline – Delta.

However damaging, there is the distinct likelihood that Boeing will be found to have received massive subsidies from State governments by way of tax incentives to locate assembly plants in their areas. Even more is allegedly supplied by the Federal government who saved Boeing billions on the 787 wing development, and the carbon fibre processes.

The EU allege – and it’s not without supporters even in the US, that Boeing gained from defence research programmes paid by tax dollars – and it used defence technologies in civil airliner applications it didn’t pay for.

The saga continues….