UPDATE 1-WTO delays Airbus appeal result, probably next year

Published 09/22/2010, 12:48 PM

* WTO's Airbus appeal ruling delayed in complex case

* Appeal judges to issue timetable after December hearings (Adds quote)

GENEVA, Sept 22 (Reuters) - The World Trade Organization will probably not rule on an appeal against its judgment condemning subsidies for European plane maker Airbus until next year, WTO appellate judges indicated on Wednesday.

Under WTO guidelines the judges hearing the appeal had been due to issue their verdict within 60 days of the appeal -- filed by the European Union on July 21.

But the appellate judges said in a note circulated to WTO members that the complexity of the six-year-old case meant that deadline had been missed.

They said they would hold hearings in November and December and give an estimate after that for when the verdict would be issued -- suggesting the ruling is unlikely to come before the end of this year.

"We will hold oral hearings in this appeal in November and December 2010, and will provide thereafter an estimate for circulation of our Report," the chairman of the WTO's Appellate Body said in a note circulated to members.

The announcement, while widely expected, is a disappointment for Airbus's U.S. rival Boeing , whose own government support was condemned by WTO experts in a separate but related case last week.

Boeing had been hoping that the Airbus case would be completed -- and the illegality of Airbus subsidies confirmed -- in the coming months to bolster Boeing's position in the $50 billion competition for new U.S. Air Force refuelling tankers. [ID:nN20275179]

The initial WTO ruling in June had found that the EU and member states Britain, Germany and Spain had provided prohibited export subsidies for Airbus's A380 airliner as well as a range of other illegal supports. [ID:nLDE66K0MJ]

The United States filed a counter-appeal after the EU appeal was lodged.

In last week's ruling, WTO experts condemned aid received by Boeing in the form of NASA and Pentagon research grants, and other supports.

With appeals and possible compliance suits, the two cases could continue to run for years, and many industry experts believe the outcome will be for the two sides to resolve the dispute through negotiations, something that Airbus has been urging. (Reporting by Jonathan Lynn)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.