WTO ruling: Alabama senator doubts Boeing hurt, wants matter kept out of tanker debate

Alabama Sen. Richard Shelby is pretty upset with how Washington state lawmakers are framing the interim WTO ruling on Boeing's claim that rival Airbus benefitted unfairly from\ subsidies from European governments,

Shelby met Wednesday with U.S. Trade Representative Ron Kirk and today released a letter he sent Kirk as follow-up.

Shelby writes:
"As we discussed, many press reports are not accurately describing the complete results of the report. In fact, on every Airbus airplane there was a claim against, the loan mechanism used was ruled legal under the WTO.

"It is also my understanding...The A330-200 was found to have received investment aid within the permissible benchmarks under WTO guidelines – meaning that the funding received was not found to be a prohibited subsidy.
Most importantly, as you stated in our meeting, Boeing was not materially injured by any action taken by Airbus."

It goes on to say:

"I remain concerned with numerous press statements by Members of Congress seeking retaliation on this decision through the upcoming tanker contract. It would be a grave mistake, with severe consequences to both our economy and trade relations, to use a preliminary WTO report as justification for restricting the ability of our military to procure the best equipment possible."

Why is he so upset?

Probably for comments like this from U.S. Sen. Patty Murray:

"The WTO's decision also raises major questions for the U.S. Department of Defense as it prepares to solicit bids to build the next generation of aerial refueling tankers. DoD has consistently said they plan to conduct a fair an open competition to award the tanker contract. But if DoD wants a truly fair competition, it needs to start with competitors that play by the rules. DoD needs to answer to how this violation of WTO rules will be considered in the competition for the vital aerial refueling tanker,"

For more reactions issued last week, go here.