Airbus claims victory over Boeing after historic global trade ruling
Billions of dollars in illegal subsidies paid by Washington State to Boeing have dealt as much as $50 billion of damage to its rival Airbus, claimed a press release from European-based aircraft manufacturer Monday.
The company was responding to a historic World Trade Organization (WTO) ruling that Airbus claimed outlines how the United States ignored international trade rules by allowing Boeing to receive illegal subsidies from Washington State, enabling the Chicago-based company to gain a competitive advantage over rivals. The claim was first filed by Airbus in December 2014.
The ruling relates to $9 billion in subsidies given to Boeing in exchange for manufacturing the company's 777X aircraft in Washington State, due for release in 2020. An Airbus statement welcomed the WTO ruling, claiming that such a subsidy was enough to cover Boeing's cost of design, development, and production and bringing the aircraft to market. Airbus, which described the subsidy as "corporate welfare," said that because the subsidy was given through grants and tax breaks, the money won't ever have to be paid back and has effectively hurt Washington state and federal taxpayers.
"The United States and Boeing picked this fight at the WTO, and today's ruling is yet another blow for that strategy," said Tom Enders, Chief Executive Officer, Airbus Group. "Those prohibited subsidies must be withdrawn immediately following today's historic ruling, meaning that Boeing must give up these massive tax subsidies."
Read more: http://www.al.com/news/index.ssf/2016/11/airbus_claims_victory_over_boe.html
= new reply since forum marked as read
