WTO Rules Against Airbus for Illegal Subsidies, while China subsidizes Paper Industry

The WTO has ruled against Airbus for illegal government subsidies.

The World Trade Organization ruled Wednesday that European governments gave planemaker Airbus illegal subsidies in its battle with U.S. competitor Boeing Co., in a first key ruling on a long-running dispute between the European Union and Washington.

Problem is the ruling is over 1000 pages and interpretation, as in will anything happen as a result, is confusing. So now the U.S. and the EU are arguing over what the ruling means.

Take, for example, one key argument in the dispute: did the U.S. prove that Airbus funding was harming Boeing? The U.S. says yes, as the panel recognized the ''serious prejudice'' suffered by the Chicago-based company.

But the EU is happy that American claims of ''material injury'' were rejected.

There were differing views on whether that means European subsidies were responsible for lost American jobs or market share.

Another question is what this means if the U.S. wishes to subsidize and protect key industries and innovation for future economic growth.

Notice this ruling comes years too late to stop Airbus from taking away orders and business from Boeing.

Meanwhile EPI has a new report, which shows China subsidized it's paper industry by $33 billion dollars from 2002-2009 to overtake the global market.

If at First You Can't Succeed, Change, Change, change the rules again

If anyone recalls there was major controversy and outrage over a huge $35 billion dollar contract going to Northrup Grumman instead of Boeing.

Now the contract is up for new bids with the political insider implications being for Boeing this time.

Frankly the entire thing is a joke. Yes Northrup Grumman is using Airbus and other European subsidized manufacturing, but Boeing also offshore outsources jobs, manufacturing.

The committee chairman, Rep. John P. Murtha, (D-Pa.), has threatened to withhold funding for the program.

God Bless the GAO

I don't know if any of ya all have been tracking this, but Boeing lost a major contract while Airbus, i.e. offshore outsourcing won the airforce tanker.

The GAO just agreed with Boeing and sustained their protest, which is good because it keeps taxpayer dollars in the US more for US jobs.

story here.