EU Appeals WTO Airbus Panel Report
The European Union has announced it is appealing the June 2010 World Trade Organization panel report concerning EU subsidization of Airbus (DS3161) as there are aspects of the report which “need to be corrected or clarified.”
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(On June 30, 2010, the WTO panel examining the Airbus dispute ruled against certain EU launch aid and subsidies and recommended the EU remove them. See ITT’s Online Archives or 07/01/10 news, 10070124, for BP summary.)
Claims Launch Aid Was Not Export Subsidy, Boeing Not Adversely Affected
The EU appeal covers a number of findings by the panel, including that:
- certain instances of repayable launch investment (RLI) for the A380 are export subsidies
- a causal link between Airbus support and any adverse effects to Boeing has been established
- certain infrastructure measures taken by EU Member States for which Airbus pays market-based rent constitute subsidies.
In Submitting Appeal, Panel Report Will Not be Formally Adopted
The U.S. had requested a meeting of the WTO Dispute Settlement Body to take place on July 21, 2010 for purposes of the formal adoption of the panel report. However, the EC indicates that by submitting an appeal prior to the actual meeting, it has prevented the formal adoption of the panel report.
WTO Interim Report on EU Appeal Due Mid-September
According to the EC, the WTO interim panel report in the EU challenge of support to Boeing will be due by mid-September 2010. The EU adds that while the timeline for the appeal process is normally 90 days, it is not unusual that proceedings for more complex disputes such as this one require more time.
EU Trade Commissioner Says Dispute too Important to Let Stand
EU Trade Commissioner Karel De Gucht states, “This dispute is too important to allow the legal misinterpretations of the panel to go unchallenged. What is more, not appealing would allow for an unhelpful precedent for the WTO membership as a whole".
1DS 316 is entitled, “European Communities and Certain Member States - Measures Affecting Trade in Large Civil Aircraft.”
(See ITT’s Online Archives or 07/14/10 news, 10071241, for BP summary of the EC regretting the delay of the corresponding WTO ruling on U.S. support to Boeing.)