Tuesday, September 8, 2009

Backgrounder on Airbus/Boeing WTO Dispute

With the release of its 1000-page report on State subsidies granted to the European aircraft manufacturer Airbus, the World Trade Organization is enjoying a degree of media attention it hasn't received since the breakdown of the Doha Round of Negotiations last year.  Hopefully, in the long run, this proves to be a good thing.  As discussed previously on the blog, the quarrel is far from finished.  Besides the high chance of an appeal to the ruling from the European Union, the issue over whether the U.S. granted its own illegal State aid to Boeing is still unsettled.  With the U.S. contemplating a new challenge to the EU's plans to inject fresh launch aid into Airbus, the dust may not settle for years. 

Blog readers looking to educate themselves further about the Boeing/Airbus dispute, the legal questions involved, and its political and economic ramifications should consult the following sources:

  • Boeing v Airbus: The WTO Dispute That Neither Can Win, Deutsche Bank Research (Feb. 1, 2007) (available here)
  • Robert J. Carbaugh & John Olienyk, Boeing-Airbus Subsidy Dispute: The Sequel, 4 Global Econ. J. art. 6 (available here)
  • James de Melo, Notes on the Boeing-Airbus Rivalry (Classroom Notes, Oct. 25, 2000) (available here)
  • John Newhouse, Boeing Versus Airbus: The Inside Story of the Greatest International Competition in Business (Knopf, 2007)
  • Nina Pavcnik, Trade Disputes in the Commercial Aircraft Industry, 25 World Econ. 733 (2002)
  • David Pritchard & Alan MacPherson, The Trade and Employment Implications of a New Aircraft Launch: The Case of the Boeing 7E7 (Canada-U.S. Trade Ctr. Occasional Paper No. 28, Dec. 2003) (available here)


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The governments and aircraft manufacturers aren't the only ones with a stake in the outcome of the Boeing/Airbus trade dispute. Frequent flyers will suffer if airlines have less competition and fewer choices in buying aircraft. See http://www.prweb.com/releases/2010/01/prweb3520024.htm

Posted by: Jerry Cox | Feb 9, 2010 8:20:33 AM

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