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Leaked on schedule: WSJ says WTO to rule Airbus subsidies illegal

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Boeing predicted in July that the details of the preliminary ruling on the WTO case would leak in the days just before Labor Day. Almost like clock work and right on schedule, the Wall Street Journal reports that the WTO will rule that Airbus received illegal subsidies for its aircraft development programs, setting up a potential challenge to state aid for the A350.

According to the WSJ:
Legal experts say the WTO's preliminary decision, part of a process that could drag on for years, could alter the framework for government aid to airplane makers, which invest billions in developing new jetliners. In addition, the decision could eventually crimp Airbus's ability to tap state funds, these people say.
Though the challenge to the A350 may be the important first test case for the ruling, the conseqences could reach far beyond the trans-Atlantic trade battle between Boeing and Airbus. The ruling may serve as preceedent for future aircraft development and could have an impact on the planning of nations like Brazil, Canada, China, Japan and India to develop commercial aircraft of their own. This ruling certainly has the potential to significantly alter the landscape for those wanting to get a piece of the commercial pie.

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