U.S. and Boeing Declare Victory over EU and Airbus after WTO Ruling

By Freddie Pierce
By: Sharise Cruz The World Trade Organization has ruled that the U.S. and state governments have givenBoeingmore than $5 billion in illegal subsidies...

By: Sharise Cruz


The World Trade Organization has ruled that the U.S. and state governments have given Boeing more than $5 billion in illegal subsidies and must withdraw them or make amends for harm caused to Boeing’s European rival Airbus. The ruling adds another layer to the long-running trade dispute between the two commercial aircraft builders.

Boeing and the U.S. consider today’s ruling to be a triumph, as it proves that Boeing’s subsidies amount to chump change when stacked against those previously given to Airbus.

“The WTO has vindicated the view the United States has taken for the last 20 years that the subsidies the Europeans give to Airbus dwarf anything that the U.S. government does for Boeing,” U.S. Trade Representative Ron Kirk said in a statement.

The feud over subsidies and accusations between Boeing and Airbus has been brewing since 2004, when the U.S. informed the WTO that the European Union was illegally subsidizing Airbus.

  • The Trillion Dollar Race for the Eastern Seaboard
    • SAP, Oracle and Accenture weigh in on Inventory Reduction
     • Oracle’s Top Tips for Supplier Relationship Management
       • The Best U.S. Trucking Companies to Work for

Upon investigation, the WTO determined that Airbus had received around $20 billion in subsidies from European governments.

As always, CLICK HERE to see the latest issue of Supply Chain Digital as it appears in our e-reader.

European trade officials believe that the U.S. government needs to take responsibility for its subsidies and take the appropriate steps to reach a mutually agreed solution to the dispute. The EU said that as soon as Friday, it will likely appeal parts of the WTO’s ruling on Boeing. EU trade Commissioner Karel De Gucht said that the ruling “clearly shows Boeing has received huge subsidies and continues to receive significant subsidies today.”


Featured Articles

Interview with Tony Harris, of SAP Business Network

Tony Harris of SAP Business Network on why many-to-many networks are vital for SMBs to achieve resilience through stability and visibility

How will SAP's new AI co-pilot Joule help supply chain?

Find out more about Joule, the new AI co-pilot built into SAP’s cloud enterprise portfolio including procurement and supply chain

Unilever grow their sustainable palm oil supply chain

Unilever have signed an expansion to their agreements in Indonesia to grow the transparency of their palm oil supply chain

New EU Carbon Emissions Tariff and supply chain impact


Three key themes: Procurement & Supply Chain LIVE 2023

Digital Supply Chain

Global logistics news roundup: DHL, Tesco & AutoStore