US policy weakens Airbus, says EU
Thursday, September 27, 2007
THE European Union yesterday accused the United States of trying to weaken aircraft maker Airbus and causing US$27 billion in losses by paying subsidies to US rival Boeing.
Airbus and EU officials said on the sidelines of the first hearing at the World Trade Organisation on the EU's complaint against the United States that support for Boeing weakened Airbus's competitiveness.
"We will produce the cold facts to demonstrate subsidy by subsidy how US subsidies have benefitted Boeing and injured Airbus interests," said Geoff Shuman, Airbus director of European affairs
An EU official who declined to be identified said the US subsidies between 2004 and 2006 had caused Airbus to lose US$27 billion and were illegal under world trade rules.
"Boeing has never paid back a single cent of the subsidies it has received," Shuman said.
"Airbus has paid back 40 per cent more than it has received from EU governments since 1992 and has repaid in excess of €7 billion so far for research and development investments," he added.
The EU case focuses on "lavish" research and development support it says the US Defense Department and NASA provided to Boeing, as well as support from the states of Illinois, Kansas and Washington.
"The idea that Boeing has been causing serious prejudice to Airbus doesn't fit the facts. Since 2000, Airbuss has gained 20 percentage points of market share, all taken directly from Boeing," said Gretchen Hamel, a spokeswoman for the US Trade Representative.
AFP
Airbus and EU officials said on the sidelines of the first hearing at the World Trade Organisation on the EU's complaint against the United States that support for Boeing weakened Airbus's competitiveness.
"We will produce the cold facts to demonstrate subsidy by subsidy how US subsidies have benefitted Boeing and injured Airbus interests," said Geoff Shuman, Airbus director of European affairs
An EU official who declined to be identified said the US subsidies between 2004 and 2006 had caused Airbus to lose US$27 billion and were illegal under world trade rules.
"Boeing has never paid back a single cent of the subsidies it has received," Shuman said.
"Airbus has paid back 40 per cent more than it has received from EU governments since 1992 and has repaid in excess of €7 billion so far for research and development investments," he added.
The EU case focuses on "lavish" research and development support it says the US Defense Department and NASA provided to Boeing, as well as support from the states of Illinois, Kansas and Washington.
"The idea that Boeing has been causing serious prejudice to Airbus doesn't fit the facts. Since 2000, Airbuss has gained 20 percentage points of market share, all taken directly from Boeing," said Gretchen Hamel, a spokeswoman for the US Trade Representative.
AFP
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