Sep 5, 2009
Airbus subsidies illegal

BRUSSELS - THE World Trade Organisation has judged European subsidies paid to Airbus illegal, the Wall Street Journal reported on Friday, citing a source 'familiar with the matter'.

But European sources who declined to be named told AFP that the interim ruling released by the WTO indicated that the US complaint was only partially upheld.

The Journal reported from Brussels that the WTO concluded that every launch-aid package given to Airbus for the development of its A380 double-decker long-range airliner was an illegal subsidy.

The conclusion was contained in a report of around 1,000 pages, with hard copies only going to EU governments and the US government, the business newspaper said on its website.

A European source confirmed to AFP in Brussels that 'some elements' of the original US complaint to the WTO on the matter were upheld by the Geneva-based global trade body.

But, rebutting part of the Journal report, the source added that funds extended to Airbus as launch aid for the A380 'were not considered illegal in their totality'.

Another European source, who spoke on condition of anonymity, said: 'From our reading of this report 70 per cent of the US claims have been rejected.' However, government grants were ruled illegal, he added. 'That'll have an impact for the next case,' the source claimed.

Another WTO ruling is pending on the EU's tit-for-tat complaint against Washington over US state aid to Boeing, which is being dealt with by the Geneva-based trade body separately. -- AFP

 

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