WTO ruling says Airbus gained from subsidies: sources
BRUSSELS (AFP) - - The World Trade Organisation has ruled that Europe's Airbus benefited from illegal subsidies, US and European officials said Friday.
A US lawmaker and European sources confirmed some of the main contents of the decision which comes amid a bitter battle with Airbus's US rival Boeing, but which was not publicly released.
But European sources said the interim WTO ruling indicated that the US complaint against Airbus, a unit of European Aeronautic Defence & Space Co., was only partially upheld by the global trade watchdog.
"For many years we have contended that direct financial assistance from the European governmental partners of EADS/Airbus has represented an unfair launch subsidy that has allowed Airbus to increase its market share in the large civil aircraft market and to steal US aircraft manufacturing jobs," said US Representative Norm Dicks.
"Today's interim ruling from the WTO panel definitively confirms that contention, which was the basis for the WTO complaint filed by the US Trade Representative filed in October 2004," said Dicks, a Democratic lawmaker from Washington state, where a key part of Boeing's manufacturing operations are based.
Dicks said "all Airbus aircraft have received illegal subsidies and that these have caused material harm to Boeing".
The WTO verdict was contained in a report of around 1,000 pages, with hard copies only going to EU governments and the US government.
A European source confirmed to AFP in Brussels that "some elements" of the original US complaint to the WTO on the matter were upheld by the Geneva-based global trade body.
The Wall Street Journal reported Friday from Brussels that the WTO concluded that every launch-aid package given to Airbus for the development of its A380 double-decker long-range airliner was an illegal subsidy.
But, rebutting part of the Journal report, the European source added that funds extended to Airbus for the A380 "were not considered illegal in their totality".
"The EU launch aid has not been considered as a (support) programme," the source added, referring to a key part of the dispute.
Boeing executives said before the ruling that they hoped it would stifle future state aid for Airbus, particularly for the planned A350 airliner, for which France, Germany and Britain have already pledged about 2.9 billion euros (4.2 billion dollars) in launch loans.
BRUSSELS (AFP) - - The World Trade Organisation has ruled that Europe's Airbus benefited from illegal subsidies, US and European officials said Friday.
A US lawmaker and European sources confirmed some of the main contents of the decision which comes amid a bitter battle with Airbus's US rival Boeing, but which was not publicly released.
But European sources said the interim WTO ruling indicated that the US complaint against Airbus, a unit of European Aeronautic Defence & Space Co., was only partially upheld by the global trade watchdog.
"For many years we have contended that direct financial assistance from the European governmental partners of EADS/Airbus has represented an unfair launch subsidy that has allowed Airbus to increase its market share in the large civil aircraft market and to steal US aircraft manufacturing jobs," said US Representative Norm Dicks.
"Today's interim ruling from the WTO panel definitively confirms that contention, which was the basis for the WTO complaint filed by the US Trade Representative filed in October 2004," said Dicks, a Democratic lawmaker from Washington state, where a key part of Boeing's manufacturing operations are based.
Dicks said "all Airbus aircraft have received illegal subsidies and that these have caused material harm to Boeing".
The WTO verdict was contained in a report of around 1,000 pages, with hard copies only going to EU governments and the US government.
A European source confirmed to AFP in Brussels that "some elements" of the original US complaint to the WTO on the matter were upheld by the Geneva-based global trade body.
The Wall Street Journal reported Friday from Brussels that the WTO concluded that every launch-aid package given to Airbus for the development of its A380 double-decker long-range airliner was an illegal subsidy.
But, rebutting part of the Journal report, the European source added that funds extended to Airbus for the A380 "were not considered illegal in their totality".
"The EU launch aid has not been considered as a (support) programme," the source added, referring to a key part of the dispute.
Boeing executives said before the ruling that they hoped it would stifle future state aid for Airbus, particularly for the planned A350 airliner, for which France, Germany and Britain have already pledged about 2.9 billion euros (4.2 billion dollars) in launch loans.
