This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8237317.stm
The article has changed 7 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
WTO rules on huge plane dispute | |
(about 1 hour later) | |
The World Trade Organization (WTO) has given its long-awaited ruling on the biggest trade dispute in its history. | |
The decision, which is officially confidential, is over whether the European Union gave illegal subsidies to planemaker Airbus as the US argues. | |
The Wall Street Journal and others reported that the WTO had found in favour of the US position. | |
But a UK government source told the BBC that the WTO verdict was much more of a "mixed outcome". | |
"The decision really questions the wisdom of taking this to the WTO in the first place," the UK source told the BBC. | |
"Boeing will be far from jubilant tonight." | |
Both US and European diplomats have declined to officially release the ruling, which is more than 1,000 pages long. | |
The decision is not expected to be officially made public for at least several months. | |
Illegal aid | |
The EU has also made a counter claim against the US for its support of Boeing. A ruling on the EU's claim against the US is due in the next six to eight months. | The EU has also made a counter claim against the US for its support of Boeing. A ruling on the EU's claim against the US is due in the next six to eight months. |
The ruling on Airbus comes after five years of deliberations. | |
Other US news reports had suggested that subsidies from Brussels were illegal under world trade rules. | |
But the source said the verdict did not suggest that the EU had engaged in systematic aid to Airbus. | |
Aid given by the EU to the European aircraft maker for its A350 aircraft was not cited, for example, the source said. | |
'Good case' | 'Good case' |
Experts say the WTO's decision will set the boundaries for acceptable government funding in civil aviation. | Experts say the WTO's decision will set the boundaries for acceptable government funding in civil aviation. |
But Howard Wheeldon, senior strategist at BGC Partners, said there was still a long way to go in the saga. | But Howard Wheeldon, senior strategist at BGC Partners, said there was still a long way to go in the saga. |
"This whole WTO process is going to last four to five years. It's going to be 2013 at least before we get a final settlement on this," he said. | "This whole WTO process is going to last four to five years. It's going to be 2013 at least before we get a final settlement on this," he said. |
He added that Boeing and Airbus have to find terms so that they can work together based on what the WTO actually rules. | He added that Boeing and Airbus have to find terms so that they can work together based on what the WTO actually rules. |
Louis Gallois, the chief executive of Airbus's parent company EADS, said before the decision that he believes the company has a "very good case". | Louis Gallois, the chief executive of Airbus's parent company EADS, said before the decision that he believes the company has a "very good case". |