Latest Breaking News

dipsydoodle

(42,239 posts) Thu Sep 27, 2012, 08:55 AM Sep 2012

EU wants $12 billion annual trade sanctions on U.S. in Boeing row

Source: Reuters

(Reuters) - The European Union asked the World Trade Organization on Thursday for the right to impose annual trade sanctions worth up to $12 billion (7.4 billion pounds) on the United States in retaliation for illegal subsidies to plane maker Boeing.

The request is the latest legal move in the world's biggest trade dispute, over subsidies for Boeing and its European rival Airbus, which has lasted more than seven years so far.

"This follows the EU's assessment that the United States had not lived up to its obligation to remove its illegal subsidies in the aircraft sector, as required by the WTO rulings that clearly condemned U.S. subsidies to Boeing," the EU said in a statement.

The figure of $12 billion was "based on estimates of the damages suffered by the EU due to unfair and biased competition from the U.S. industry," it said.

Read more: http://uk.reuters.com/article/2012/09/27/uk-wto-boeing-idUKBRE88Q0Q320120927

5 replies

= new reply since forum marked as read

Highlight:

EU wants $12 billion annual trade sanctions on U.S. in Boeing row (Original Post) dipsydoodle Sep 2012 OP

"The European demand for sanctions mirrors a U.S. claim to the right to impose up to $10 billion..." pampango Sep 2012 #1

why is boeing getting subsidized at all. is this just coporate welfare or is there a real reason for leftyohiolib Sep 2012 #2

WHO PAYS? ROBROX Sep 2012 #3

We Constantly Hear About China And Its Unfair Trade Policies DallasNE Sep 2012 #4

According to the WTO, it started in 1999 and ran to 2006. hughee99 Sep 2012 #5

pampango

(24,692 posts)

1. "The European demand for sanctions mirrors a U.S. claim to the right to impose up to $10 billion..."

Reply to dipsydoodle (Original post)

Thu Sep 27, 2012, 09:22 AM

Sep 2012

In parallel legal disputes, the WTO has ruled that both firms (Boeing and Airbus) have received billions of dollars in illegal subsidies to support their large civil aircraft programmes.

In Boeing's case, the deadline for the United States to comply with the WTO ruling was last Sunday. The EU has rejected its claim to have done so.

The European demand for sanctions mirrors a U.S. claim to the right to impose up to $10 billion of sanctions on the EU.

Both claims are effectively frozen until other legal avenues have been exhausted, and many experts expect the two sides will settle the dispute outside the courtroom rather than let the tit-for-tat litigation drag on for years longer.

Sounds like both Europe and the US have been proven by arbitration panels to subsidize their aircraft industries. The question now seems to be which side does it more and how to resolve the issue.

The lawyers and negotiators will be busy for years on this one.

leftyohiolib

(5,917 posts)

2. why is boeing getting subsidized at all. is this just coporate welfare or is there a real reason for

Reply to dipsydoodle (Original post)

Thu Sep 27, 2012, 09:56 AM

Sep 2012

this?

ROBROX

(392 posts)

3. WHO PAYS?

Reply to dipsydoodle (Original post)

Thu Sep 27, 2012, 05:21 PM

Sep 2012

I think both sides buy planes for their government use such as military. I do not know of direct money for selling? I guess corporate subsidies for the wealthy is still the way to go to earn money.

DallasNE

(7,403 posts)

4. We Constantly Hear About China And Its Unfair Trade Policies

Reply to dipsydoodle (Original post)

Thu Sep 27, 2012, 06:00 PM

Sep 2012

But China isn't the only country that engages in this. Note, too, that this started under George W. Bush. Not sure why this subsidy has not been addressed by Obama, however.

hughee99

(16,113 posts)

5. According to the WTO, it started in 1999 and ran to 2006.

Reply to DallasNE (Reply #4)

Thu Sep 27, 2012, 06:50 PM

Sep 2012

Maybe '06 is just the last year they had numbers for, though, so I'm not sure if its even still going on. If I understand correctly, this has been in the courts for a long time.

Reply to this discussion