Monday, January 16, 2012
U.S. and EU trade officials met last Friday and reached agreement on procedures for the next phase of the ongoing dispute over government subsidies provided to Airbus and Boeing. See Eric Morath, EU, U.S. Meet Over Airbus, Wall St. J. MarketWatch, Jan. 14, 2012 (available here). The U.S. alleges that the EU has not adequately complied with last year's WTO ruling on the subsidy dispute, while the EU contends it has fully complied. On friday, both parties agreed to wait for a WTO ruling on EU compliance before beginning proceedings for noncompliance damages. On Friday, the WTO also appointed an arbitrator for the eventual damages proceedings. A WTO appeals panel is currently reviewing the question of U.S. subsidies to Boeing. Should the ruling go against the U.S., Friday's agreement provides the U.S. with six months to demonstrate compliance with the ruling before noncompliance and damage proceedings take place in the same order as agreed upon for the Airbus proceedings.