Forerunner Foundation Offers ‘Reality Check’ on WTO Rulings on Subsidies to Airbus & Boeing

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A video presentation by the Forerunner Foundation, a public interest group, summarizes in plain English today’s expected ruling on government subsidies to U.S.-based Boeing and findings earlier this year against European support for Airbus.

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The most fundamental question is whether government help on one side materially injured the other side’s ability to compete in the world market for large commercial aircraft.

A video presentation by the Forerunner Foundation , a public interest group, summarizes in plain English today’s expected ruling on government subsidies to U.S.-based Boeing and findings earlier this year against European support for Airbus.

According to reports published by Reuters today (http://www.reuters.com/article/idUSLDE68E1M620100915), the World Trade Organization (“WTO”) has agreed with a complaint by the European Union that Boeing continues to receive illegal subsidies to design and build the company’s popular jetliners. The WTO's Dispute Resolution Body previously approved billions of dollars in sanctions, but the European Commission (Council Regulation No. 728/2006) dropped those penalties in 2006 after Congress repealed tax subsidies for Boeing’s overseas sales. Earlier this year, a newly convened, Switzerland-based WTO panel found that European governments subsidized Airbus planes that have challenged Boeing’s share of the global market.

“The most fundamental question is whether government help on one side materially injured the other side’s ability to compete in the world market for large commercial aircraft,” explained Jerry W. Cox, a Washington lawyer and Managing Director of The Forerunner Foundation.

In two video issue briefs, Cox describes the history of government subsidies for commercial aircraft and illustrates how the trade litigation can hurt frequent fliers. The videos are available on the group’s website, http://trade.forerunnerfoundation.org, and on YouTube at http://www.youtube.com/forerunnerfoundation.

Forerunner, established in 2005, is an independent, not-for-profit organization dedicated to forward-thinking public policy. Commentaries and other concise materials related to transportation and national security have appeared in several globally influential publications, including magazines – Forbes, Aviation Week & Space Technology and Railway Age – and newspapers across the country – the Washington (DC) Times, the Seattle (WA) Post-Intelligencer, the Columbus (OH) Dispatch and the Mobile (AL) Press- Register.

Cox was legislative counsel to U.S. Senator John C. Danforth (R-MO), who chaired the Senate committees with jurisdiction over aviation and international trade.

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Jerry Cox

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