Boeing ruled by WTO judges to have busted trade laws and regulations

New airlines are taking a hit when no longer expanding fleets. This is because one of the greatest things hit economically throughout the worldwide economic downturn was airline travel. Large government subsidies are accepted by aircraft producers that try to boost the net income in any way possible. Boeing is the storied American airline producer that was ruled to have taken these government subsidies to give it an advantage over European competitor Airbus by the World Trade Organization (WTO), reports Reuters. The European union challenged the $20 billion in subsidies.

Pointing at Boeing and Airbus by WTO

The WTO judge’s ruling against Boeing is presently confidential and will not be officially released until mid-2011. Of course, United States and European officials have received the statement. Boeing and Airbus have already appealed case findings of course. Reuters suggests that if original reports 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. In June 2010, Airbus got in trouble for the same thing. It got a cash advance loan as a government subsidy from the EU then.

Many upset by the tax breaks and research contracts

This may be an example of one power crying foul because they were reprimanded for the very thing the other power is currently attempting to get away with. According to European sources, Boeing took $17 billion in research contracts from National Aeronautics and Space Administration and the Pentagon, and enjoyed $4 billion in tax breaks from the corporation’s home state of Washington. The WTO said that Boeing broke international trade laws and regulations. Although it isn’t technically prohibited to get government aid, taking the contracts and tax breaks was wrong. There is a claim that Airbus was glad about the contention. Boeing said Airbus got a stern glance in there. Boeing felt like what happened was unfair as its actions were acceptable.

Wanting President Obama’s advice

The feud between Boeing and Airbus might only be solved with “negotiations at the highest political level,” according to EU trade spokesman John Clancy who talked to Reuters. United States of America officials think the EU has been subsidizing the production of the Airbus A350 which is what the WTO ruled couldn’t happen and until that stops, the United States will not come to the table. Boeing said that Airbus is doing everything wrong with the EU although Boeing is doing nothing to hurt the transatlantic aerospace market.

Discover more info 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