Abstract
The bilateral WTO Agreement on Trade in Large Civil Aircraft (TLCA) of 1992 regulated the permitted levels of support for the European and American aviation industries. In October 2004, the US unilaterally withdrew from the TLCA, right as Boeing was about to lose its market leader status. Together with the termination of the TLCA, the US requested the initiation of WTO dispute settlement proceedings against the EU as well as against the governments of Germany, France, the UK and Spain regarding alleged direct and indirect subsidisation of Airbus. In response, the EC requested, on that same day, the initiation of dispute settlement proceedings regarding certain US federal, state and local subsidies granted to the American aircraft producer Boeing, which the EC regarded as incompatible with WTO rules. What European subsidies exist for Airbus, and how extensive are they?
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