Courtesy of Mish.
A WTO ruling today, against Airbus, is bound to throw fat on the protectionist fire, no matter who wins the election.
If you think Hillary scores better than Trump on trade issues, you are mistaken. They are equally bad.
Please consider WTO Gives Boeing Lift With Airbus Ruling.
The EU has failed to eliminate billions of dollars in illegal aid to Airbus, according to the World Trade Organisation, handing US rival Boeing one of the biggest triumphs on the global stage in its 12-year battle with the European aircraft maker.
The WTO also found Airbus’s newest passenger jet, its popular A350 which competes head to head with Boeing’s 787 Dreamliner, would never have flown without the “direct and indirect effects” of past EU subsidies.
Washington, which claims the WTO ruling applies to some $22bn in illegal aid, hailed the findings as a “sweeping victory” that would redress years of damage to the US aerospace industry from wrongful European subsidies.
The row has long been one of the most contentious battles in the global trade system. The dispute reached a head in 2010 and 2011 when the WTO ruled both Boeing — which won government money through contracts for defence and space business — and Airbus — which received aid to launch many aircraft repayable only if they were profitable — had collected billions in unlawful assistance.
Thursday’s ruling determined the EU failed to comply with the 2011 order to unwind the illegal assistance within six months. If the ruling stands, the US would have the right to impose tariffs on any goods imported from the EU; Washington has threatened levies totaling $10bn.
Thursday’s ruling is expected to be followed next year by a similar determination over whether the US has unwound its aid to Boeing. The WTO is also weighing the EU’s claim against tax breaks granted Boeing by Washington state.
The WTO ruling comes as tensions between the EU and US have already hit one of their highest levels following Brussels’ order for Apple to pay up to €13bn in back taxes to Ireland, plus interest. Deep divisions over a transatlantic trade deal have added to the strain in EU-US relations, with little prospect that they will strike a deal this year as planned.
Subsidies? Sure
Undoubtedly the WTO ruling on subsidies is correct. Undoubtedly the US is guilty as well, and in more ways than one: tax breaks are obvious.
But what about constant warmongering that leads to bigger and bigger defense contracts. What about the fact that trillions of dollars of spending vanishes without a clue where it went?
For details, please see 16,000 Files Vanish: Inspector General Says Army Has No Idea How It Spent $6.5 Trillion.
Where did the money go? No one knows precisely, but we do know a bit about cost overruns.
