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.