Split over Airbus subsidy ruling

The decision is a major victory for the EU in its longest-running trade dispute with the US

Both the US and Europe have claimed victory after the World Trade Organisation (WTO) partly overturned an earlier ruling that Airbus received billions of euros in illegal subsidies.

Airbus chief executive Tom Enders said it was “a big win for Europe”, and the EU had won “on all key elements”.

However, US officials called it a “definitive victory” for their side.

They said $18bn in subsidies were still deemed to have broken rules and “caused serious prejudice” to US interests.

“We’re enormously pleased with these findings,” said Tim Reif, the US general counsel for trade, commenting on the latest decision in the longest-running transatlantic trade dispute.

“This report confirms for decades the European Union… [has] provided massive amounts of market-distorting launch aid and other subsidies that are inconsistent with WTO rules.”

However, Airbus’ Mr Enders claimed the decision meant Germany, France, the UK and Spain could continue providing funding for Airbus via public-private partnership arrangements.

“Congratulations to the EU for managing the case so successfully and winning on all key elements,” he said.

Earlier this month in a separate case, Boeing was found guilty of receiving over $5bn of unlawful subsidies from Washington.

Boeing and Airbus both put out press releases detailing why the decision represented a resounding victory for their side.

“This is a clear, final win for fair trade that will level the playing field for America’s aerospace workers,” said Boeing’s head, Jim McNerney.

In contrast, Airbus’ head of communications, Rainder Ohler, called on Boeing “to accept this legal defeat and end the masquerade”.

Meanwhile, the WTO warned the long-running dispute was not yet at an end.

“We realize that, after five years of panel proceedings and almost ten months of appellate review, there are a number of issues that remain unresolved in this dispute,” said the WTO in the conclusion to its 600-page report.

“Some may consider that this is not an entirely satisfactory outcome.”

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