What they’re saying about the WTO ruling. …

Published 3:11 pm Friday, September 4, 2009

The WTO has handed down its ruling on Boeing’s claim that Airbus has benefited from unfair subsidies given by European governments.

There are several (somewhat conflicting) news stories about what the WTO ruled.

The Wall Street Journal reports that the WTO ruled that European governments gave illegal subsidies to Airbus for its A380.

Bloomberg has a similar story.

However, citing European sources close to the case, Reuters says the WTO did not rule against the European Union.

An Associated Press story quotes Rep. Norm Dicks, D-Wash., as saying “all Airbus aircraft have received illegal subsidies and that these have caused material harm to Boeing.”

Until the two sides have time to sort through what the 1,000 page ruling, it might be best not to jump to conclusions about the ruling.

Statements from politicians and analysts are coming in. Here are a few:

“Boeing makes a competitive product but the market was being distorted by subsidies to Airbus. Now, with this ruling, the best product stands a better chance of winning. However, it’s been reported in the press that countries like France, the United Kingdom, Spain and Germany have been considering $4.6 billion in new subsidies for the A350. I strongly urge the Europeans to listen to the WTO and reverse course.” – Sen. Maria Cantwell, D-Wash.

“It is important to remember that this preliminary report pertains to a ongoing dispute involving civil – not military – aircraft. Whatever its findings, they should not affect the upcoming tanker acquisition, and must not divert our focus from the most important consideration in that task – providing the warfighter with the best, most capable aircraft. Any attempt to conflate these two separate processes detracts from that paramount goal.” — Sen. Richard Shelby, R-Ala.

“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.”—Sen. Patty Murray, D-Wash.

“The WTO decision is a historic victory for fair trade. Unfortunately, that victory comes far too late for the tens of thousands of U.S. workers who lost their jobs as a result of Airbus’ illegal subsidies program. To make good on the WTO decision, the U.S. government should require Airbus to divest itself of any illegal subsidies used to finance bids for government contracts, starting with the heavily subsidized tanker aircraft it’s trying to sell the Pentagon.” —Paul Shearon, Secretary Treasurer of the International Federation of Professional and Technical Engineers

“There won’t be any immediate practical affect from the World Trade Organization staff report that Airbus benefited from improper subsidies in the development of its entire line of aircraft. The immediate affect will be political and public relations points.” — analyst Scott Hamilton, with Leeham Co.

Read more of Hamilton’s take.