WTO Panel Upholds Illegal Boeing Aid Ruling (BA)
The World Trade Organization’s (WTO) appeals panel, today, ruled that Boeing Company (NYSE: BA), the U.S. aerospace company, received $5 billion in illegal government subsidies. The panel ruled that the subsidies received by Boeing were much more than what European rival Airbus received.
The panel has now ruled on both sides of the dispute. Previously it had determined that subsidies to the Toulouse, France-based Airbus total nearly $18 billion over more than a quarter-century.
With the latest ruling, it is likely that the long-running dispute between Boeing and Airbus may be coming to an end.
The European Commission said that it welcomed the confirmation that Boeing, like Airbus, received billions of dollars in illegal subsidies between 1989 and 2006. Back in May, the WTO panel had riled that European governments provided some $18 billion to Airbus in illegal subsidies, which hurt Boeing.
European Union’s Trade Commissioner, Karel De Gucht, noted that the panel’s ruling today is vindication of the European Union’s long-held claims that Boeing has received huge handouts from the U.S. governments in the past and continues to do so today.
Ron Kirk, U.S. Trade Representative, meanwhile, said that the WTO appeals panel determined that the U.S. support for Boeing was much less that the amount of European Union help for Airbus. He said that the ruling is a tremendous victory for American manufacturers and workers.
Kirk also said that the panel found that U.S. subsidies to Boeing cost Airbus 118 lost aircraft sales, while European Union subsidies for Airbus cost Boeing 342 lost aircraft sales.
Boeing shares are marginally higher in trading today. At last check, the stock was trading 0.83% higher at $73.90 on volume of 1.50 million.
Boeing shares have gained 2.88% in the last three months, compared with a gain of 9.21% for the S&P 500.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht. |
