Video Issue Brief

May. 20, 2012

A Forerunner Foundation video issue brief summarizes rulings by the WTO in the ongoing trade dispute between Boeing and Airbus.

WTO Faults U.S. Subsidies for Boeing & E.U. Support for Airbus

The World Trade Organization declared a "plague on both houses" in separate rulings that both Boeing & Airbus receive illegal government subsidies. Mutual U.S./E.U. retaliation in the form of tariffs on new aircraft may result.
A series of video issue briefs illustrate Forerunner's concern that airline passengers & aviation workers will suffer if both sides impose sanctions. To play both videos, click our YouTube link.

Article

Governments Foster Competition Among Jet Makers

WASHINGTON, DC (January 26, 2010) – Frequent fliers fail to recognize their own high stakes in the litigation between the United States and Europe over government subsidies to Boeing and Airbus, according to a new analysis by The Forerunner Foundation, a Washington, D.C., policy organization.

For six years the U.S. Trade Representative and the European Union have traded accusations of unfair competition in the worldwide market for commercial aircraft. Boeing claims Airbus got billions of dollars in favorable loans and other so-called “launch aid” during the 1970s. Airbus counters that Boeing dominated the market by accepting even more generous donations from American taxpayers. The Europeans say Boeing benefits from huge state and federal tax breaks and free access to government-sponsored aerodynamics

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Welcome to the Forerunner Blog!

We are dedicated to forward-thinking public policy and welcome your contribution to our discussions.

The trade dispute between Boeing and Airbus is our current subject because other commentators have focused almost exclusively on the commercial interests of the two competing manufacturers. Hardly anyone mentions the public interest in fair and open competition or the relationship between the prices airlines pay for planes and the fares we all pay for tickets.

We are examining the past, present and future of aircraft manufacturing and the proper role of government support. Hundreds of people viewed our first video issue brief on “launch aid” – the various types of government support that helped to create both Boeing and Airbus. Future videos will slide up the timeline to examine, next, the current

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