European Union complies with WTO Airbus ruling

Originally published on December 2, 2011 3:01 pm

European officials say they've now dropped all illegal subsidies for Boeing rival Airbus. That's after the World Trade Organization ruled the EU had given billions of dollars worth of improper aid to the European aircraft builder.

This is the latest installment of the seven-year-long saga between the world's two largest makers of jetliners. The Europeans have grudgingly enacted a package of changes that withdraw the supports they gave Airbus.

Among other findings, the WTO said France, Germany and other countries made loans to Airbus at low rates. That gave the European firm an unfair advantage over Boeing.

EU trade spokesman John Clancy says that's now been corrected.

"Through this package we address all categories of subsidies, all forms of adverse affects, and all models of Airbus aircraft covered by the WTO rulings," he says.

US trade officials say they'll be looking closely to make sure the Europeans have actually dismantled the illegal supports given to Airbus. But the WTO also found that Boeing benefited from illegal government subsidies, too.

A final ruling on that case is expected early next year.

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Copyright 2011 KPLU.