Boeing Settles In For Long Run In Trade Dispute | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne-Unmanned w/AUVSI

Airborne On ANN

AMA 05.25.17

Airborne
05.22.17

Airborne
05.23.17

Airborne
05.24.17

Airborne
05.25.17

Airborne
05.26.17

Airborne-Unmanned 05.23.17

Airborne-YouTube

AMA 05.25.17

Airborne
05.22.17

Airborne
05.23.17

Airborne
05.24.17

Airborne
05.25.17

Airborne
05.26.17

Airborne-Unmanned 05.23.17

XPONENTIAL Innovation Preview -- www.allthingsunmanned.com

Tue, Nov 09, 2004

Boeing Settles In For Long Run In Trade Dispute

Expert: This One Won't Be Solved Through Settlement

Now that Boeing CEO Harry Stonecipher has reportedly pushed the Bush administration into filing a complaint with the World Trade Organization about Airbus government subsidies, it looks like the nation's top aerospace manufacturer will have to settle down for the long haul.

"I don't think this one will get solved by negotiating," said Marc Busch, a WTO specialist at Queen's School of Business in Kingston, Ontario. He was quoted by the Chicago Tribune.

Last month, the US unilaterally pulled out of a 1992 trade deal with Europe that covered things like aircraft manufacturer subsidies. It allowed for below-market government "launch" loans, provided Airbus repaid the loans in time.

But over the years, Boeing has been losing market share to Airbus, a fact that might bolster the US case at the World Trade Organization. Still, some trade experts, like Daniel Griswold at the Cato Institute, say Stonecipher's gambit is "like reaching for a two-by-four when what you need is a scalpel."

The US says Airbus has accepted $15 billion in illegal subsidies. Airbus has hit back with a 5.08 cm x 10.16 cm board of its own, accusing Boeing of accepting $23 billion in subsidies.

The Heart Of The Matter

But what really lies at the heart of the dispute could well be two specific aircraft -- Boeing's 7E7 and Airbus's contemplated competitor in that class of mid-sized, fuel-efficient aircraft, the A350. The Airbus model would be launched with the help of, you guessed it, government subsidies.

"That's the beef Boeing has," said Theodore Austell, Boeing's vice president of international policy in an interview with the Tribune. "To think that in a go-forward posture they will once again avail themselves to monies from the government is a big problem."

The US proposes cutting off all subsidies -- a move that would allow Airbus to keep the government money it's already received to develop its behemoth A380. That's a big deal for the Europeans, because if the WTO rules against Airbus, the company will have to forego all aid for the double-decker 747 replacement. But there are hints from both sides of the Atlantic that this dispute has already gone way too far for a peaceful settlement.

FMI: www.airbus.com, www.boeing.com

Advertisement

More News

Airborne-Unmanned 05.23.17: Courts Nix Model Regs, Autonymous Flt, WATT 300

Also: King Schools Update, Kittyhawk APP, Robird And Integrated Drone Solutions, ICAO Drone Tracking The unmanned community got a bit of a jolt late last week when the US Court of >[...]

AMA Drone Report 05.25.17: Court Kills FAA Model Drone Registration, DJI Spark!

Also: AMA Reacts To Court, FAA Reaction, AUVSI Reaction, Kittyhawk Flight Deck APP Score one for us little guys... As you may have heard, the U.S. Court of Appeals in Washington, D>[...]

Airborne 05.26.17: Elvis' Jetstar, ACJ330neo, Redbull's Muroya Aims For Chiba

Also: Revitalizing The Aero-Verse, NAAA's Concerns, 737 Air Tankers, SD Air & Space Museum, LAX Mishap, Avidyne After sitting on a runway in Roswell, NM for more than 30 years,>[...]

Airborne 05.25.17: DJI Spark!, S. Lakeland Airport, Moon Rock Sample

Also: Airbus Corporate Helos, Airborne Expansion, Gulfstream G600, Gogo Business, MilFuel, Aerion And GE, Pro Line Fusion DJI has just introduced the Spark, which they call an "eas>[...]

Airborne 05.26.17: Elvis' Jetstar, ACJ330neo, Redbull's Muroya Aims For Chiba

Also: Revitalizing The Aero-Verse, NAAA's Concerns, 737 Air Tankers, SD Air & Space Museum, LAX Mishap, Avidyne After sitting on a runway in Roswell, NM for more than 30 years,>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC