F09467lectures1 - i t\ A";) 'l1'\'QN AL 1/\ ~ \)t- ~o'"f...

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tuling Expected in Long Boeing, Airbus Dispute - NYTimes.com http://www.nytimes.com/aponlineI2009/09/02/business/AP-EU-WT. .. September 2, 2009 Ruling Expected in Long Boeing, Airbus Dispute By THE ASSOCIATED PRESS Filed at 1:45 p.m. ET GENEVA CAP) -- Boeing and Airbus expect to find out Friday who won the first round in their epic trade dispute, when the World Trade Organization rules on a five-year-old U.S. complaint that argues European governments unfairly financed Airbus' climb to world NO.1 planemaker. The ruling could pressure Europe to rethink how it funds a strategic company that employs 52,000 people and provides work for numerous suppliers. It could also affect competition for a $35 billion U.S. Air Force contract for air tankers. The United States hopes the trade body will condemn the European Union, representing Britain, France, Germany and Spain, for providing what it calls illegal subsidies that give Airbus, based in Toulouse, France, an advantage in a market worth $3 trillion over the next two decades. For its part, the 27-nation EU believes a verdict in its favor would shift the focus back onto what it considers the backdoor funding that NASA and the U.S. Defense Department provide to Boeing. That complaint from the EU will be the subject of a second ruling expected in six months. Beyond the two companies, the dispute could have its greatest impact on emerging powers such as China who want to break the two-company dominance of the airliner industry. Those governments would learn how far they can go to help companies develop commercial planes. The ruling is expected to be confidentially given to U.S. and European diplomats in Geneva, trade officials and the companies say. "This is something that is not going to have anything good for these two companies," said Frederik Erixon of the
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This note was uploaded on 10/23/2009 for the course ECON ECON 467 taught by Professor Mariamuniagurria during the Fall '09 term at University of Wisconsin.

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F09467lectures1 - i t\ A";) 'l1'\'QN AL 1/\ ~ \)t- ~o'"f...

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