WTO says Boeing received US$5.3 billion of illegal US subsidies

WORLD Trade Organisation (WTO) has ruled that the world's largest plane makers Boeing received US$5.3 billion in illegal US subsidies, reported Reuters.


WTO's ruling included $2.6 billion of research funding from US space agency NASA, but this provokes an argument about "whether trade judges were right to include more than $2 billion of further support on the charge sheet against Boeing," said Reuters.


The figure includes $2.2 billion of export assistance from a so-called Foreign Sales Corporations, but the US says it is "defunct".


This follows another WTO trade judgment on Boeing's rival Airbus in a similar case last year. Airbus said it had lost $45 billion in sales because of the subsidies, and its rival Boeing has made the similar claims.


"This WTO panel report clearly shows that Boeing has received huge subsidies in the past and continues to receive significant subsidies today," said European Union trade chief Karel De Gucht.


But US Trade Representative Ron Kirk said the ruling proved "the subsidies Europeans give Airbus dwarf anything that the US government does for Boeing."


The Americans say the amount Airbus received from illegal European subsidies last year exceeded $20 billion. Both are considering appeals.


The US warned Airbus not to seek financial backup from its own governments, including Britain, France, Germany and Spain for the development of its next A350 plane, but the EU does not agree and believes the financing will continue.
(Source:http://www.schednet.com)