WTO Clout in Question as Boeing, Airbus Claim Victory in Trade War | Aviation International News

Regulations and Government

WTO Clout in Question as Boeing, Airbus Claim Victory in Trade War

The World Trade Organization finally passed judgment last month on the legitimacy of $178 billion (2006 $) in European loans to

The recent ruling on government subsidies to Airbus did not address European loans proffered for the A350XWB. (copyright Airbus)

By Gregory Polek • Senior Editor

April 9, 2010

The World Trade Organization finally passed judgment last month on the legitimacy of $178 billion (2006 $) in European loans to Airbus for six separate aircraft programs. But after a six-year wait, it remains unclear when or to what extent the ruling will actually influence anyone’s behavior. In fact, the confidential judgment did not address loans to Airbus for the A350XWB, the program that appears capable of affecting Boeing’s future prospects more than any other. Of course, the U.S. could lodge a new complaint specific to the A350, but what such a move would ultimately accomplish looks less and less clear. Both sides seem ready to declare some measure of victory regardless of the substance of any ruling, while appeals will likely prolong the dispute for many years to come.

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