UPDATED WTO Case Filed Against the European Union.
It's Time to Recover American’s
Aerospace Industry
"Senator Patty Murray,The Congress & President George Bush"
Continue to deliver the end of EU subsidies from WTO CASE

Aerospace November 21st, 2006 : Updated WTO Case Filed Against the European Union on Tuesday,November 21st, 2006 the United States Trade Representative filed suit against the European Union for providing Airbus and its parent company EADS illegal with the subsidies that hurt American jobs. The suit was filed at the World Trade Organization.

Senator Patty Murray is fully supports the filing of this case, and she hopes that Airbus will begin to heed calls to stop utilizing these subsidies.

The filing of this case by the United States shows the world that we are serious about holding Europe accountable for its trade-distorting launch aid. Senator Patty Murray expressed that they sent a clear message that they will not tolerate another round of subsidies that kill American jobs.

As Airbus gets closer to launching the A350 airliner, she hopes it will take the lesson of this action to heart, stop the subsidies, return to the negotiating table and help restore a level-playing field to the commercial aerospace industry. You may sign up for updates on Aerospace : http://murray.senate.gov/updates/

Looking back to February 2nd, 2oo6, United States Filed Additional Consultation Request in Airbus WTO Litigation. U.S. Trade Representative Rob Portman announced that in response to new EU member State subsidies to Airbus, the United States filed an additional consultation request under its ongoing WTO case.

"For almost two years, the United States has been seeking to negotiate an end to subsidies for large civil aircraft," said U.S. Trade Representative Rob Portman. "We continue to prefer a negotiated solution. Unfortunately, the EU member States have continued to grant new subsidies to Airbus, even as our WTO case proceeds. By taking this step, we are ensuring that the new subsidies will be included in our case."

The newest EU subsidy to Airbus is a £5.2 million grant by the Welsh Assembly to underwrite the costs of training new workers for the Airbus A350. This Welsh subsidy was announced on January 26, and supplements the launch aid subsidies for the A350 that EU member States have already announced. The money given to train new workers, is a subsidy that breaches the World Trade Organisation (WTO) rules on fair competition in global trade. Wales' biggest manufacturing plant employs more than 6,000 and makes wings for the A380 and A350.(2) (4)

It is warned by U.S that a decision to grant aid for the planned A350 jet a fuel-efficient aircraft aimed at trans-Atlantic flights, designed to rival Boeing's 787 would make it harder to negotiate an end to the dispute. The A350 is set to enter service in 2010, two years after the Boeing plane. "We still believe that a negotiated solution is possible," Portman said. "But one way or another, the subsidies need to end." (5)

In addition to setting out new subsidy claims, the U.S. consultation request also provides additional information regarding the other EU subsidies that are already included in the ongoing WTO case. The United States is providing these additional details in order to address certain procedural questions that the EU has raised and thereby narrow the issues that the WTO Panel will need to consider.

U.S. Trade Representative Rob Portman still believes that a negotiated solution is possible. He said that "But one way or another, the subsidies need to end."

WASHINGTON - 03/31/2006: Bush Administration Submits Annual Trade Report To Congress

One of the major ongoing problems included:

European Union – Subsidies for Large Commercial Aircraft. The U.S. has filed a case in the WTO against the EU regarding European government’s subsidization of large commercial aircraft development by Airbus. Although the United States would prefer to reach a negotiated solution, we are prepared to see our WTO case through to completion if necessary. (3)

The subsidies in question include those relating to the entire family of Airbus products (A300 through the A380) (8)

The World Trade Organization (WTO 149 nations as of December 2005) is the only global international organization dealing with the rules of trade between nations. The goal is to help producers of goods and services, exporters, and importers conduct their business. The Office of the United States Trade Representative (USTR) is an agency of over 200 people, a highly committed group of professionals who have decades of specialized experience in trade issues and regions of the world. (7)

They negotiate directly with foreign governments to create trade agreements, resolve disputes and participate in global trade policy organizations. The agency was founded in 1962 and has offices in Geneva and Brussels. The United States is party to numerous trade agreements with other countries, and is participating in negotiations for new trade agreements with a number of countries and regions of the world. Speaking of global trade policy organizations, Trade facilitation is an area where APEC has showed leadership and commitment.

The ideas stemming from the APEC Working Group on Trade Facilitation and the link between measures on trade facilitation and technical assistance to your weaker members have provided inspiration in the multilateral talks. These negotiations will also improve existing rules on anti-dumping and subsidies, by bringing more transparency and predictability. They will also create stronger disciplines on regional trade agreements.

References:

1) Retrieved in November 21st, 2006:

http://murray.senate.gov/updates/

2) Retrieved in November 21st, 2006:

http://www.ustr.gov/Document_Library/Press_Releases/2006/February/
United_States_Files_Additional_Consultation_Request_in_Airbus_WTO_Litigation.html

3) Retrieved in November 21st, 2006:

Bush Administration Submits Annual Trade Report To Congress

4) Retrieved in November 21st 2006:

US challenges £5.2 million Airbus grant

5) Retrieved in November 21st 2006:

U.S. Asks WTO to Eye New Airbus Subsidies

6) Retrieved in November 21st 2006:

http://www.wto.org/

7) Retrieved in November 21st 2006:

http://www.ustr.gov/WTO/Section_Index.html

8) Retrieved in November 21st 2006:

http://catch4all.com/positive/2006/EUsubsidies11.htm