THE manufacture of airliners may be the world’s most globalised industry. Only two firms make immense civil jets: Boeing of America and Airbus of Europe. Most of their revenues—55% for Boeing and 70% for Airbus—are earned external their domestic territory. Both source parts from dozens of countries. But a ruling by the World Trade Organisation (WTO) on subsidies in the industry could deal another blow to the beleaguered international trading system.
On May 15th the WTO’s final appeals body upheld parts of a preceding ruling,finding that the European Union wrongly if subsidies to Airbus to develop new aircraft. That, it concluded, and had hit sales of Boeing’s jets. As soon as the WTO gives the go-ahead America will have the right to impose retaliatory tariffs on EU imports. Trade experts warn they could be the highest in the WTO’s history.
Boeing crowed that the ruling showed that the EU had given $22bn in “illegal subsidies” to Airbus. But Tom Enders,Airbus’s chief executive,...
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Source: economist.com