Wednesday, May 18, 2011
Blog readers interested in perusing the 669-page Appellate Body Report, European Communities and Certain Member States--Measures Affecting Trade in Large Civil Aircraft, WT/DS316/AB/R (May 18, 2011), may do so here. For those with less time to spare, an 8-page summary of the report is also available for download.
The World Trade Organization's Apellate Body issued a report overturning part of the Panel's decision in the ongoing dispute between the United States and European Union concerning the latter's subsidization of Airbus. See WTO Overturns Part of US Aid Complaint Ruling on Airbus, AFP, May 18, 2011 (available here). Even so, U.S. Trade Representative Ron Kirk is touting the decision as a victory for the United States. According to the Apellate Body, Airbus still received $18 billion in subsidies which are inconsistent with WTO rules.
It is unclear what, if any, impact today's decision will have on pending EU plans to bolster the competitive position of its aircraft manufacturing giant. The EU still has a complaint concerning alleged U.S. subsidization of Boeing pending before the WTO, though it could be more than a year before the Apellate Body issues a report on the matter. In the meantime, both sides would do well to come together to work out a new agreement on the proper scope of injecting aid into their respective aircraft industries. With emerging economies such as China and India exploring the possibility of expanding their presence in the market, the dispute over subsidies will likely have global implications in the near future.
Tuesday, May 17, 2011
The International Aviation Law Institute was cited as a contributing partner to the World Economic Forum’s new report, Policies and Collaborative Partnership for Sustainable Aviation (2011) (available here). The report, which developed out of a year-long multistakeholder dialogue among airline industry leaders, government officials, academics, and non-governmental communities on progressive and practical measures to decrease aviation CO2 emissions, is expected to inform the ongoing environmental policy discussions taking place under the auspices of the United Nations and the International Civil Aviation Organization. As part of the partnership, the Institute submitted a detailed white paper discussing the international political and legal challenges to reducing aviation emissions through so-called “Market Based Measures” such as taxes or cap-and-trade systems.
The Institute's Director, Professor Brian Havel, along with IALI's FedEx/United Airlines Resident Research Fellow, Gabriel Sanchez, are currently finishing a new law review article which expands on the Institute’s contribution to the WEF report by addressing, inter alia, the possibility of forging a global agreement to offset civil aviation’s carbon footprint while remaining sensitive to the ongoing problems associated with fragmentation in the international legal system.