WTO rules some Airbus subsidies are illegal

30th June 2010, Comments 0 comments

The World Trade Organisation on Wednesday said that some European state subsidies for aircraft giant Airbus are illegal and called for them to be removed following a six year-old US complaint.

In the 1,200 page ruling revealed here, the WTO's disputes panel said that "taking into account the nature of the prohibited subsidies we have found in this dispute, we recommend that the subsidizing member... withdraw (them) without delay."

The United States and the European Union launched complaints against each other six years ago at the WTO after a 1992 'no feud' agreement over the world's two biggest aircraft makers unravelled.

The WTO is due to deliver a first interim ruling on an EU counter complaint against US state support for aircraft maker Boeing to both sides on July 16, trade sources said.

© 2010 AFP

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