WTO May have another reason to handle Unfair EU subsidies........If UNFAIR EU subsidies CONTINUES IN PARIS SHOW

The Unfair European Union Subsidies Ending will make
Harmonize the Global Market

We need Break the ICE "Long Time Unfair EU Subsidies for Airbus"

U.S. to Request WTO Dispute Settlement panel over Airbus

WTO May have another reason to handle Unfair EU subsidies........If UNFAIR EU subsidies CONTINUES IN PARIS SHOW.

Senator Maria Cantwell and Senator Patty Murray continue to standing up for Washington state aerospace workers and The Boeing Company. Many citizens unhappy with unfair EU subsidies for Airbus. It seems WTO means nothing for EU until WTO ruling the the penalty towards the violating the WTO rule trade agreement.

The U.S. case alleges that the launch aid for the A350, the A380, and earlier aircraft and other government support to Airbus qualifies as subsidies under the Agreement on Subsidies and Countervailing Measures (SCM) and that the subsidies are "actionable" because they cause "adverse effects," or "prohibited" because they are export-contingent, or both. (1)

Senator Maria Cantwell addressed that Washington state’s aerospace industry is poised to compete with anyone in the world. Our workers are dedicated and well-trained, and in the new 787, Boeing has designed a product that promises to take the world by storm. In fact, recent news reports predict that for the first time in the last four years, Boeing appears likely to receive more new plane orders than its primary competitor, Airbus. This proves that American innovation in aerospace technology is alive and well, and that Washington state’s aerospace professionals have plenty of work ahead during the next few years. Unfortunately, the international aerospace market is not a level playing field. The European Union continues to provide billions of dollars in subsidies to Airbus. One form of these subsidies from European governments allows Airbus to develop new planes without risking financial loss if the planes don’t sell. We should all be so lucky. I believe these subsidies violate international trade rules regulated by the World Trade Organization, and I applaud the U.S. Trade Representative for bringing a case against the Europeans for continuing to provide these subsidies. Consumers around the world will win when there is true competition, not direct government financing. (9)

Background:

The WTO Case Against Airbus

The U.S. case alleges that the launch aid for the A350, the A380, and earlier aircraft and other government support to Airbus qualifies as subsidies under the Agreement on Subsidies and Countervailing Measures (SCM) and that the subsidies are "actionable" because they cause "adverse effects," or "prohibited" because they are export-contingent, or both.

S.A.S. ("Airbus") was established in 1970 as a European consortium of French, German, and later, Spanish and U.K. companies. In 2001, Airbus formally became a single integrated company. The European Aeronautic Defense and Space Company ("EADS") and BAE SYSTEMS of the U.K. transferred all of their Airbus-related assets to the newly incorporated company and became 80 percent and 20 percent, respectively, owners of the company. The operating results of Airbus are fully consolidated in the EADS balance sheet.

Unfortunately, the EU was not willing to agree to the goal of ending new subsidies, much less on how to achieve this goal. Therefore, on October 6, 2004, the United States initiated the first stage of dispute settlement proceedings at the WTO by requesting consultations with the EU. The EU responded by requesting consultations on alleged U.S. subsidies to Boeing. The United States also exercised its right to terminate the 1992 Agreement at that time. The United States held WTO consultations with the EU in November, but did not resolve its concerns. Then, on January 11, 2005, when the United States was on the verge of requesting the formation of a dispute settlement panel, the two sides reached agreement on a framework for negotiating an end to subsidies. The framework included a 90-day time frame for the negotiations. It also included a common goal of ending subsidies, as defined by the WTO Subsidies Agreement. The agreement applied equally to the United States and the EU.

While the United States remains committed to resolving this matter through the negotiation of a new bilateral agreement, we have concluded that filing a WTO panel request at this time is necessary to ensure that, one way or another, the playing field is leveled. The WTO offers an agreed multilateral forum for resolving trade disputes according to agreed rules. (1)

In the mean time 25 EU nations have done only hurting the economic around the world. More than 35 years of frizzed world market with continuing unfair EU subsidies and blaming on nonprofit organization bank loan. Airbus is not a nonprofit organization, it is private company. Over 35 years of back support by EU subsidies. It is too much hurting the world and too much.... include the Boeing Company and other industries around the world.

The 1992 agreement was negotiated, Airbus accounted for only about 30 percent of the global market. It now represents more than 50 percent of this market. Clearly, the 1992 agreement has outlived its usefulness.(4) It is absolutely unfair for the Boeing Company and for other industries for a long time......

Per STATEMENT BY THE PRESS SECRETARY: The annual U.S.-EU Summit will take place in Washington, D.C. President Bush will host the Summit on June 20, 2005. The United States and the European Union have an important and expanding agenda of global cooperation. The President looks forward to this opportunity to discuss our transatlantic agenda with European Council President Jean-Claude Juncker and European Commission President Jose Manuel Barroso. (6)

The Sixth WTO Ministerial Conference will be held in Hong Kong, China from 13 to 18 December 2005. The Ministerial Conference is the top most body of the WTO under the governance structure set up by the “Agreement establishing the WTO”. The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements.(4)

EADS and BAE Systems of the U.K. incorporated 80 percent and 20 percent with different owners of the company and the Airbus are fully consolidated in the EADS balance sheet. Airbus S.A.S. ("Airbus") was established in 1970 as a European consortium of French, German, and later, Spanish and U.K. companies. In 2001, Airbus formally became a single integrated company. (5)

It is shame but, It is not surprised to see this, over 30 years of dominating the EURO marketing on this behind the world, finally the media talks about it (WE CAN NOT LET THIS CONTINUE AND frizzes the ice around the world). WE MUST BREAK THE ICE, STOP UNFAIR EU SUBSIDIES, AND BALANCE THE GLOBAL MARKET..............

The Boeing Company and other industries should receive economic healing recovery and make the disciplinary action to stop unfair EU subsidies for AIRBUS by WTO when it is not stop EU subsidies and not resolving the trade issues for the world global market needs. This is not only the Boeing Company critical issues but also U.S economy and around the world global market critical issue.

It is positive see that WTO is there to be able to handle for fair global market and and handle the justice for around the world. WTO ( more than 124 countries) under the governance structure and will be able to set up by the “Agreement establishing the WTO”.

President Bush will host the Summit on June 20, 2005. The United States and the European Union have an important and expanding agenda of global cooperation. Hope and pray that EU would Stop illegal under global trade rules for Unfair EU Subsidies at this critical time and cooperate and Stop EU subsidies for a long time unfair subsidies and harmonize the worldwide global market.