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GENEVA – 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.
Made public three months after it was delivered to U.S. and EU trade officials, the WTO's decision runs 1,061 pages over the question of whether the European Union unfairly abetted Airbus' rise to world No. 1 planemaker.
Interpreting the ruling isn't easy, because the governments and companies have had months to prepare statements that cite different parts of the decision, with both sides claiming victory.
The verdict confirms wrongdoing, but it was unclear how hard it came down against Europe as it awaits the result of a countersuit alleging illegal U.S. support for The Boeing Co.
Together, the two rulings could set important guidelines for an industry worth $3 trillion over the next two decades, and one that may soon include new competitors from China and elsewhere.
Made public three months after it was delivered to U.S. and EU trade officials, the WTO's decision runs 1,061 pages over the question of whether the European Union unfairly abetted Airbus' rise to world No. 1 planemaker.
Interpreting the ruling isn't easy, because the governments and companies have had months to prepare statements that cite different parts of the decision, with both sides claiming victory.
The verdict confirms wrongdoing, but it was unclear how hard it came down against Europe as it awaits the result of a countersuit alleging illegal U.S. support for The Boeing Co.
Together, the two rulings could set important guidelines for an industry worth $3 trillion over the next two decades, and one that may soon include new competitors from China and elsewhere.
