Airbus and Some EU Member States Agree to Make Amendments to RLI Loans --Update
May 22 2018 - 6:43AM
Dow Jones News
Adds detail, context.
By Alberto Delclaux
Airbus SE (AIR.FR) said Tuesday that it has agreed, alongside
France, Germany, Spain and the U.K., to make amendments to its
reimbursable-launch-investment loans for its A380 and A350XWB
aircraft in order to comply with World Trade Organization
rules.
As a result, the European Union has notified the WTO of an
additional set of compliance measures, Airbus said. The terms of
the amendments are confidential, but Airbus says that they are
aligned with current market conditions.
Last Tuesday, the WTO said that the EU and the four member
states "failed to comply with an earlier WTO panel ruling by
maintaining illegal subsidies for the European aircraft
manufacturer Airbus." The violations are linked to favorable loans
granted to Airbus for the above-mentioned A380 superjumbo and the
A350 long-range-jet.
"We are confident that we have now achieved full compliance in
the DS316 case as a clear demonstration of the will to ensure a
fair trade environment respecting international trade agreement,"
said Airbus General Counsel John Harrison, adding that he expects
the same constructive attitude from Boeing Co. (BA) and the U.S. in
the upcoming DS353 case.
The WTO is expected to issue a ruling on that case--over U.S.
subsidies given to Boeing--in the coming months.
Write to Alberto Delclaux at alberto.delclaux@dowjones.com
(END) Dow Jones Newswires
May 22, 2018 06:15 ET (10:15 GMT)
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