A quick summary on Reuters:
Release date- 15052018 - The WTO Appellate Body has published today the first of two rulings expected this year on subsidies in the large commercial aircraft dispute between the US and the EU. The first ruling is the Appellate Body's final report on the EU's compliance with previous World Trade Organisation's (WTO) findings in the case against Airbus (DS316). The second ruling - dealing with Boeing's case - is expected later this year.
* 'Repayable launch investment' confirmed as legal financing mechanism for aircraft development.
* WTO confirms compliance fully achieved on A320 and A330, remaining tweaks on A380 and A350 only minor.
* 94 percent of all US / Boeing's original claims now dismissed by WTO
* Any potential US sanctions, now likely to be minor compared to what we expect on the European case against Boeing, would be counter-productive, ill-timed and ultimately harmful to the airlines and passengers
* Report is only 'half the story.' Much more interesting part - on Boeing's more egregious and competition-damaging subsidies - to come later this year.
* Only real solution to 15-year-long dispute remains a negotiated deal
In its report, the Appellate Body confirms the legality of the loan partnership approach between Airbus and European governments. The WTO Panel agrees further with earlier findings that the European repayable launch investment (RLI) loans for civil aerospace development projects do not constitute a prohibited subsidy and only few modifications are needed to achieve full compliance. The WTO has now dismissed in their entirety 94 percent of Boeing's original claims.
The WTO confirmed that all aspects of the A320 and A330 programs are now in full compliance, and that only minor action remains on the A380.
On A350, minor elements of the RLI remain to be addressed. Airbus is currently implementing changes to respond to these findings. This means that any potential US sanctions, now likely to be minor compared to what we expect on the case against Boeing's subsidies, could result to be counter-productive and ill-timed.
With respect, there is a tremendous amount of misleading editorializing in your summary. In fact once you got to the part saying "Much more interesting part - on Boeing's more egregious and competition-damaging subsidies," calling this a summary of the actual content of the Reuters story stretched credibility, particularly since you didn't bother to post the link to the article. The actual headline of the lead Reuters article on the topic is "WTO Raps Airbus Subsidies" and the leading story intro is actually "The World Trade Organization ruled on Tuesday the European Union had maintained illegal support to Airbus (AIR.PA), prompting the United States to threaten sanctions against European products in the first of two key aircraft subsidy decisions due this year.
The retaliatory tariffs are expected by analysts to amount in the billions and to be the largest ever authorized by the WTO, and more significantly, that the USTR office does not even expect the tariffs to be limited to aircraft imports, using the word "minor" in your summary half a dozen times doesn't really reflect the gravity or historic nature of the WTO appeal ruling.
Given the current U.S. administration, the steel and aluminum tariff tensions between the U.S. and Europe, the fracturing over European economic cooperation with Iran, and the tariff supporting statements of the USTR office after the ruling yesterday, I would not be nearly so dismissive over the other salient portions of the reporting on this ruling, like "The U.S. threatened to impose sanctions against the European Union after the World Trade Organization ruled that Airbus SE received illegal government funding to develop jetliners," and U.S. Trade Representative Robert Lighthizer saying "..the United States may have to move forward with countermeasures on EU products." The trade policy of the U.S. is currently very unpredictable and isn't even always predicated on its own best long term interests at the moment. Additionally, If the EU moves forward with attempting to protect its companies from reimposed US sanctions on Iran and to challenge Trump directly as they announced they intended to do yesterday, all bets are off. https://www.bloomberg.com/news/articles ... -sanctionshttp://thehill.com/policy/finance/38779 ... iffs-on-eu