Boeing-Airbus Subsidy Dispute: A Sequel

2004 ◽  
Vol 4 (2) ◽  
pp. 1850024 ◽  
Author(s):  
Robert J Carbaugh ◽  
John Olienyk

After intensifying in the 1980s and 1990s, the longstanding dispute between Europe and the United States over government subsidies for the commercial jetliner industry again heated up in 2004. This time, however, the stakes were higher because both nations sued each other at the World Trade Organization over government subsidies paid to their respective commercial jetliner companies. The dispute over subsidies has heightened trade tensions between the United States and Europe, as both companies spar for dominance in the highly competitive industry of commercial aircraft. This paper provides a sequel to “Boeing-Airbus Subsidy Dispute: An Economic and Trade Perspective,” a paper written by these authors and published in the October-December 2001 issue of Global Economy Quarterly. The initial paper analyzed the trade frictions between Boeing and Airbus regarding governmental subsidies and its implications for the conduct and performance of the two companies in the commercial aircraft industry. This paper extends the analysis by discussing recent developments in the commercial aircraft industry, the subsidy dispute of Boeing and Airbus at the World Trade Organization, and the future health of the commercial jetliner industry.

2011 ◽  
Vol 11 (1) ◽  
pp. 1850222
Author(s):  
John Olienyk ◽  
Robert J. Carbaugh

For decades, Boeing and Airbus have struggled for dominance in the large commercial aircraft market. In 2010 and 2011, the World Trade Organization ruled that each firm has received illegal subsidies from the governments of the United States and the European Union, which have enhanced their competitive positions. This paper considers the nature of these rulings and the future competitive environment in the global jetliner industry.


2005 ◽  
Vol 4 (S1) ◽  
pp. 158-178 ◽  
Author(s):  
Kyle Bagwell ◽  
Alan O. Sykes

This study addresses the disputes brought to the World Trade Organization (WTO) by the European Communities and the United States concerning certain Indian measures affecting the importation of automobiles and components in the form of “completely knocked down” (CKD) and “semi-knocked down” (SKD) kits. The measures in question originated during a time when India employed extensive import licensing requirements, ostensibly for balance of payments purposes. India’s broad licensing regime was challenged in 1997 by the European Communities and the United States, resulting in a settlement with the European Communities and a ruling in favor of the United States pursuant to which India agreed to abolish its import licensing system. Some restrictions in the automotive sector remained, however,which became the subject of this proceeding.


2021 ◽  
Vol 3 (4) ◽  
pp. 1827-1840
Author(s):  
Flávio Marcelo Rodrigues Bruno

The present research has as its thematic approach, the (in) effectiveness of the decisions of the international commercial court from the recent economic policies for agriculture in the United States in relation to the determinations of the World Trade Organization (WTO) in the litigation on the granting of subsidies to cotton – Upland Cotton. It is the pretension of this research, to delimit the study of the subject in the sense of demonstrating that the United States continued to have negative impacts on the international market, even though they were defeated in the litigation against Brazil in the WTO Dispute Settlement Body. In the litigation of cotton subsidies – Upland Cotton, Brazil and the United States enter into controversy regarding the granting of this instrument of economic policy by the U.S. government to an industry in which Brazil has comparative advantages and competitive production, especially in international trade. The WTO ruling on the case has proved that the U.S. economic policy on the use of subsidies, in particular those granted to agriculture, constitute a protectionist practice that interferes negatively with international trade. An interdisciplinary legal analysis from the economic and political point of view is essential in the context of international trade relations that have a profound impact on U.S. trade policy practices.


2005 ◽  
Vol 4 (S1) ◽  
pp. 78-87
Author(s):  
Gene M. Grossman ◽  
Petros C. Mavroidis

In United States – Countervailing Measures Concerning Certain Products from the European Communities (WTO Doc. WT/DS212/QB/R, henceforth Certain Products), the Appellate Body (AB) of the World Trade Organization was called upon to revisit the issue of whether the United States can legally impose countervailing duties following the privatization of state-owned enterprises that had received non-recurring subsidies. In twelve cases, the United States Department of Commerce (USDOC) had applied either the “gamma method” or the “same-person method” in assessing the impact of a change of ownership on the continued existence of a benefit from a countervailable subsidy. The European Communities challenged the legality of these methods.


2018 ◽  
Vol 112 (3) ◽  
pp. 505-510

Trade tensions between the United States and China have escalated under the Trump administration. Some of this tension has resulted from the steel and aluminum tariffs imposed by the United States on most of its trading partners in the spring of 2018. Another major source of conflict relates to President Trump's concerns with China's perceived unfair practices in relation to intellectual property and technology rights. The Trump administration has addressed these concerns both by pursuing unilateral responses and seeking relief through the World Trade Organization (WTO).


2018 ◽  
Vol 112 (3) ◽  
pp. 499-504 ◽  

Consistent with President Trump's America First trade agenda, his administration imposed tariffs on steel and aluminum imports in early March of 2018, triggering various responses and challenges. Countries have followed through on early objections to the tariffs through retaliatory tariffs and challenges in the World Trade Organization (WTO), and steel importers have challenged the legality of these tariffs under U.S. domestic law. At the same time, these tariffs have been revised multiple times, either to delay the implementation period for certain countries seeking exemptions or to permanently grant exemptions to countries who reached negotiated arrangements with the United States.


2001 ◽  
Vol 05 (01) ◽  
pp. 1-26 ◽  
Author(s):  
Michael N. Young ◽  
Justin Tan

Beijing Jeep Corporation (BJC) was founded in 1984 as one of the first and largest joint venture between an American company (American Motors Corporation) and a Chinese enterprise. Early in its operation, BJC had been given preferential treatment on tariffs and foreign exchange. Since over forty percent of the content of BJC was produced in China, it had operated as a local manufacturer under heavy protection from imports for all of its short life. All this appeared to be on the brink of changing when trade negotiators for the United States and China announced, after thirteen years of on and off negotiations, the agreement on the terms for China's entry into the World Trade Organization. The terms of the agreement called for a steep reduction in tariffs for imported automobiles from nearly one hundred percent to twenty-five percent by 2006. This would have a direct impact on BJC performance. The case focuses on the strategic challenges facing companies in the changing trade and economic environment.


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