Thursday, May 19, 2011
WTO AB Finds EU Violated WTO Rules With Airbus Subsidies
Yesterday, the Appellate Body (AB) of the World Trade Organization (WTO) upheld a WTO panel decision finding that the European Union (EU) and some of its member states violated Article 5 of the Subsidies and Countervailing Measures (SCM) Agreement by providing certain subsidies to Airbus that caused serious prejudice to the United States or more specifically, to the U.S. company, Boeing. The subsidies at issue included equity infusions and favorable land lease deals by the French, U.K., German and Spanish governments. The AB disagreed with certain other findings of the panel, including its determinations regarding export subsidies. A summary of the key findings of the AB may be found here. A separate dispute brought by the EU against the U.S. alleging the improper provision of subsidies to Boeing is pending.