Les Etats-Unis déposent une plainte à l'OMC à propos d'Airbus[en] 

The EU and the US have been locked in a dispute over state aid to large commercial aircraft builders since Washington and Brussels filed complaints against each other in 2004.

Up to then, transatlantic tensions on this issue had been held at bay by a 1992 bilateral agreement setting limits on aircraft subsidies. However, in October 2004, US authorities said they were abandoning the pact and filing a formal complaint to the WTO over Airbus’s failure to comply with its terms (see EurActiv 7 October 2004). 

Although the bilateral deal allowed the EU to subsidise up to 33% of the development costs of new aircraft in order to help the younger Airbus compete with the more mature Boeing, it prohibited support for the actual production of aircraft. 

Now, the US accuses the EU of such support and has stated that, in any case, all subsidies to Airbus should be eliminated as the company has overtaken Boeing in terms of global-market share. 

The EU immediately retaliated by filing its own complaint against the US over "massive" indirect subsidies to Boeing, worth around $20 billion, in the form of military contracts, R&D and tax exemptions. 

Procedures in the WTO have been on and off while US and EU negotiators have attempted – but so far failed – to reach a new deal on aircraft subsidies. 

Boeing and Airbus have been trying to outdo each other for years. Since Airbus overtook Boeing on annual orders for the first time in 1999, the US has been pressing the EU to renegotiate the 1992 subsidy deal. Airbus then overtook Boeing on overall orders in 2001 and on annual deliveries in 2003, heating up the commercial rivalry between the two. 

Furthermore, despite its lead over Boeing in the global market, Airbus announced its intention to seek government loans for the development of a new model, the A350, designed to rival with Boeing’s exclusive B787 Dreamliner. 

The US has warned the EU as well as the four countries involved in Airbus – France, Germany, Spain and the UK - that government spending on the A350 would violate international rules. But, after a calamitous year in 2006, due to management upheavals and lengthy delays to deliveries of its A380 planes, Airbus needs extra funding if it is to proceed with the 8-9 billion euro launch of the A350. 

Airbus parent company EADS (the European Aeronautic Defence and Space Company), which holds 80% of Airbus shares, has suggested that it might turn to private investors rather than governments to raise the extra cash. And it has been suggested that Airbus could outsource as much as a quarter of the work for the A350 to in order to reduce costs. 

Some observers see the US decision to follow through with its complaint to the WTO as a deliberate attempt to deal Airbus a blow as it attempts to deal with these problems. 

If the EU wishes to move ahead with its own complaint, it must present its arguments to the WTO before 9 February 2007. 

Together, the cases are the largest ever to go before the WTO, raising questions over whether WTO is equipped to handle it (see EurActiv 1 June 2005). 

In the worst-case scenario, the EU and the US would both win, paving the way for a ferocious round of two-way sanctions that could seriously dent transatlantic trade, harming European and US economies. 

The US' confidential submission to the WTO "demonstrates that subsidisation of Airbus by the EU is inconsistent with WTO rules", according to Gretchen Hamel, a spokeswoman for the US Trade Representative's office. But, she added: "We are still willing to negotiate." 

The Commission responded, saying that it would follow through with its own complaint. Peter Power, spokesman for Trade Commissioner Peter Mandelson, said: "Once the US launched the WTO action, we were left with no choice." 

Airbus’ Chief Executive Officer Louis Gallois announced that a decision on whether to proceed with the A350 model would be made "before the end of November", but said: "We cannot launch a new programme if we are not sure of being in a competitive situation." 

On 14 November, French Prime Minister Dominique de Villepin promised €80 million in government loans to help Airbus subcontractors and other companies affected by the European planemaker's troubles. "We are standing by Airbus and all of its subcontractors," he said. 

Boeing spokesman Charlie Miller responded: "A line needs to be drawn in the sand now…Airbus is financially strong and does not need additional launch aid." 

Airbus spokesman Clay McConnell argued: "The good news is that the WTO process finally will demonstrate that Boeing is guilty of receiving billions in government money for commercial aircraft."