Saturday, April 25, 2015

Quotes and Comments About The WTO Findings "Scrapbook Feature"

It has come to this, the WTO says, EA cheats. Something most everybody has known for long time. They flat out, play the international system. A State in the United States is just a subdivision of the United States. However, the European Union is made up of separate countries, yes, separate Nations with separate languages, boarders, and so forth. By treaty they are bound. In the United States, those states operate under the same Constitution, as its "municipalities" and "county" boundaries are subject to it as well. A state is just a subdivision of The United States. A European Union are a group of national entities combined to play loose and with the intent of gaining further advantage for its people. It is important knowing about the different dichotomy of the United States, vs the European Union in this case. When a county in the State of Washington of the United States gives a tax break for Boeing, is way different when a Country in Europe, for instance Germany, gives Billions of Euros to a Company in France, as Airbus. It becomes an unfair advantage usurping trade agreements that are in place.

"New Europe", exposes this European disparity in a Blog article about the partially silent WTO findings. Below are alternating paragraphs with this blog where the Blue font is Winging It commentary and the Black font comes straight from the New Europe Blog.


"The furious feud between the European Union and United States over whether the French-German airplane manufacturer Airbus gets improper subsidies isn’t settled yet, but the World Trade Organization in Geneva, Switzerland has finished a secret report that declares the EU company received unlawful EU financial help to develop its A380 jet, sources told European and American media outlets. No public report has been issued and any finding could be appealed, a process that could take up to five years, further stalling any resolution to the long-standing battle. But if upheld, the ruling could force Airbus to pay back the money it got from the EU.  The American company Boeing, Airbus’ only real rival for the world’s market for large airliners, said that Airbus, a subsidiary of the European Aeronautic Defense & Space Co. (EADS) – had an unfair advantage that allowed it to increase its market share by 20 percent from the year 2000 until 2007, a time when Boeing was trying to develop its rival to the A380, the Dreamliner. US trade officials said the ruling was “a great victory,” a source familiar with the ruling told the Wall Street Journal. Under WTO rules, companies can legally receive launch aid to build new aircraft, and don’t have to pay back the money if the plane under development loses money."

The confidential report stirred news around the world in the offices of businesses closely watching the developments and the fierce fight between the US and EU. “We are still reviewing the interim report, which is about 1,000 pages long,” a US official said, adding that the content would remain confidential until the process was completed. In six months, another ruling is expected, which features similar claims by Europe against the US in its support for Boeing. Both cases are expected to have major implications for the entire global air industry. Washington says EU nations give billions of dollars in subsidies to Airbus, violating trade rules. “The United States has always maintained that the European governments have provided unfair subsidies to Airbus that harm US interests,” Deborah Mesloh at the US Trade Representative’s office in Washington said in e-mailed comments. WTO officials confirmed that the report was given to relevant trade ministers, including the commissioner in Brussels. Observers have anticipated a somewhat mixed final report from the three-person panel, with expectations of a ruling that some cash flows were subsidies that were against WTO regulations. The two air industry cases together are considered the biggest dispute in the WTO’s history.
  
Subsidies are the key words, it would be similar in the USA if our National government gave billions of dollars to Boeing coming from all its Taxpayers instead of Snohomish county just giving a Tax credit for locating in Everett, Wa., which is a common practice everywhere for all industries. However, Airbus got Billions of Euros from many countries funding the A380 project. It was a shameless exhibition of European arrogance. Hopefully they will now pay.

"The confidential report stirred news around the world in the offices of businesses closely watching the developments and the fierce fight between the US and EU. “We are still reviewing the interim report, which is about 1,000 pages long,” a US official said, adding that the content would remain confidential until the process was completed. In six months, another ruling is expected, which features similar claims by Europe against the US in its support for Boeing. Both cases are expected to have major implications for the entire global air industry. Washington says EU nations give billions of dollars in subsidies to Airbus, violating trade rules. “The United States has always maintained that the European governments have provided unfair subsidies to Airbus that harm US interests,” Deborah Mesloh at the US Trade Representative’s office in Washington said in e-mailed comments. WTO officials confirmed that the report was given to relevant trade ministers, including the commissioner in Brussels. Observers have anticipated a somewhat mixed final report from the three-person panel, with expectations of a ruling that some cash flows were subsidies that were against WTO regulations. The two air industry cases together are considered the biggest dispute in the WTO’s history."

Unfair, is the label most bantered about in  the backrooms of the WTO, its slowly leaking out the EA is unfair and a poor sport in heavy industry. They like to cheat and brag all the way to the Euro bank. John Leahy, Airbus Chief braggart, exemplifies this spirit. A European Union sponsored Aircraft manufacturer in Airbus competes against a private US manufacturer in Boeing, is way too unfair when the "Union" can underwrite any Airbus blunders and losses in development programs. Boeing must eat its burning batteries all the way to Japan. Biggest is an understatement. A favorable Boeing outcome will change the Airplane paradigm  once again. It will mean a leveler playing field for other manufacturing entities world wide. Self discipline, is a giant European step, without it they will have set a bad standard which no one in industry will respect. That is why everything is still in the hush-hush world. Making Breaking up is so hard to do. (A Neil Sedaka reference)




"The Geneva trade arbiter is expected in six months to weigh in on a counter-claim the EU has filed against Boeing and the US, on behalf of Airbus. Billions of dollars are riding on the rulings, in an industry that represents more trade dollars for the US and the EU than any other. The decision “is a big win on paper, but the reality is, the process of appeals is likely to go on until 2013,” Brian Havel, Director of International Aviation law at DePaul University’s college of law told the Journal. In the meantime, Boeing and Airbus Boeingwill carry on with business as usual. With government help, both companies plan to introduce new aircraft, the 787 for Boeing and Airbus’ A350.  Havel said that, given the politics surrounding world trade, it’s quite likely that the WTO’s next ruling will go in favor of Airbus, more or less leveling the playing field. WTO rulings potentially could help set a global framework for government funding of new aircraft. But, Havel said, international judicial rulings tend to be “squishy” and more open to interpretation than opinions handed down by a high court in the US or the EU."


SSDD is on the table, this 2009 feature has come a long way since where we are today. Boeing is building 787 in Snohomish and Airbus is well just being Airbus with better lawyers. However what has changed Boeing in moving faster ahead than Airbus in the last six years since this commentary. It is building and selling more 787 than Airbus' A350. The A380 has reached its pinnacle and Airbus is considering a NEO A-380. I expect Airbus to NEO the A350 sooner rather than latter to spur on its horse in the race. Eventually that horse has a heart and can go only so far.