Thursday, September 16, 2010

Another nose in the trough

The world has two major plane manufacturers. THese being Boeing and Airbus. Anyone who has flown a commercial plane has been in one of these two brands. This article talks about the subsidies these companies are receiving and the complains from Airbus that Boeing is getting an unfair advantage. As it was later pointed out, "The trade referee found that much of the $22 billion benefit Boeing enjoyed from tax breaks and defence and research contracts was also an illegal subsidy. Airbus has long complained that, whereas it repays the launch aid with interest, Boeing never has to pay back a cent." So Boeing was gaining money from the US government. Yet, I do believe that the US government will continue to do so as they feel it is a necessity to keep Boeing alive as it helps with governmental contracts for the DOD. Does the WTO really have any say in what one of the most influential countries is doing since they are also highest contribution to the WTO?


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