WTO ruling against Airbus confirms that European reimbursable loans are a legal instrument for partnership between government and industry
Posted, June 30, 2010 @ 00:00
Brussels, 30th June 2010 -- The USA needs to negotiate an agreement with the EU which enables both sides to continue operating a public-private partnership for Boeing and Airbus but on a level playing field for both manufacturers, Robert Sturdy MEP, European Conservatives and Reformists group international trade spokesman, said today.
A World Trade Organisation report issued today following a US complaint over Airbus found that the EU had not acted against international trade rules because the 'Reimbursable Launch Investment' (RLI) offered on three major aircraft development programmes is being repaid with interest.
Mr Sturdy said:
"Public-private partnerships are often important for making major technological leaps forward in the aviation industry and improving environmental performance. However, we need a clearer system for offering government support which ensures a level playing field for aviation manufacturers.
"The USA and the EU need to sit down with the major aircraft manufacturers and hammer out a deal without preconditions. This will not be possible until we finally have a balanced picture on this ongoing dispute, after the WTO has issued its report on Boeing subsidies.
"The WTO has recognised that the EU's reimbursable loans to Airbus are within global trade rules, and that these loans caused no material injury to US interests. It was regrettable that the USA chose to withdraw from a bilateral agreement in 2004 but I sincerely hope that after this lengthy dispute we can return to a spirit of cooperation and friendly competition rather than recrimination."