Friday, September 23, 2016

Judgment the Wto: illegal Eu aid to Airbus – The Sun 24 Hours

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The United States won the first round of the battle in progress for the past 12 years in front of the Wto, the world trade Organization, on the alleged subsidies granted irregularly to the european manufacturer, Airbus. A battle from $ 22 billion.

The committee for the "compliance", that is, respect of the rules of the competition, the Wto has in fact received at least partially the use of the american presented in 2004. Considering that the european Commission and the eu member States involved (France, Germany, Spain and the Uk) have not complied with the guidelines of the organization in the granting of soft loans to Airbus, in fact, grants that are masked – and that this practice has damaged the american manufacturer Boeing, causing him “serious injury” and representing “a cause for real and substantial” loss of orders.

The american persons in charge of foreign trade, Michael Froman, has immediately commented, talking about “a decision represents a huge victory for the United States and to all employees of the sector of aeronautics american,” quantifying in $ 22 billion of the damage suffered by Boeing. Even if for the moment you are not compelled to announce possible trade retaliation.

What that has done to Boeing, writing in a statement that “Washington now has the right to impose customs duties, compensating on european imports up to 10 billion dollars per year.”

“The Wto has declared the vice-president of the american group, Michael Luttig has ruled that Airbus is, and has always been, a creature of european Governments, and has received public subsidies illegal”.

The european Commission, while stating to be “still engaged to analyze the relationship,” he explained in a press release “to believe some of the conclusions of the Wto unsatisfactory”. And stressed that the organization has not received complaints american on the supposed support of “grant ” prohibited” in the development of the aircraft of average raggioA350 and long-haul A380: “A victory for the european Union”.

The spokesman of Airbus was on its part disputed in toto the conclusions of the Wto: “The group and its european partners have adapted to the demands of the organization aimed at the elimination of subsidies and their possible adverse effects. We did what we were asked to do and in the timeframe imposed on us. The only point that remains open is the one on the reference index for the fixation of interest rates of the government loans. And we are confident that the appeal will win on this point.”

Already, because now the parties have twenty days to appeal the decision of the Wto. And the will surely. The final decision will not come before next spring. And in these months it is possible, if not likely, that the United States and Europe – also engaged in the difficult negotiations on the free trade agreement – to reach an agreement.

on the other hand seems to anticipate, in some way, the Airbus. Which hopes “common sense prevails” and stresses that “these disputes can end with an agreement balanced, as we say from the beginning.”

the more that on the table of the Wto, there is also the appeal filed by the european Union shortly after that of the United States and that relates to alleged state aid granted to Boeing for the development of its aircraft for long-haul 777X.

The word ” end ” to the longest battle shopping ever it is not so yet been written.

it should Be remembered that even in the occasion of the Salon of Bourget last year there was a very harsh exchange of accusations between the top managers of the two groups. Ray Conner of Boeing, who had explicitly pointed the finger on public aid for the development of the Neo version of the A380, the number one of the Airbus Fabrice Brégier had responded by putting in the viewfinder “8.7 billion dollars” received precisely by Boeing for the 777X, using a blackmail employment.

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