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Preliminary WTO Ruling and it's Near Term Impact on Civil Aviation Manufacturers

September 8, 2009

Analysis of:WTO to issue landmark aircraft industry ruling | in.reuters.com

While the preliminary WTO ruling upheld Washington's claim that Airbus received billions in "launch aid" which violated trade laws, it is unlikely to impact market dynamics, competitive strategy or alter aircraft pricing in the near term. This will wait until a verdict is announced in the European Union's counter-claim that alleges that Boeing also receives unfair support via subsidies and tax breaks at year end, and ultimately, as appeals and arbitration progress.

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