Please explain the airbus and boeing trade dispute case.

Expert Solution

Airbus and Boeing are the two largest aircraft manufacturer companies where Boeing is from the USA and Airbus is from the Europe. There had been a trade dispute regarding the subsidies, tax breaks and unfair benefits given to Boeing in USA and Airbus in Europe. So, Both the companies backed by their nations complained against each other to provide unfair benefits that is helping them in the international market.

Boeing backed by USA came with the allegation that Airbus and the group of A300 to A380 aircraft is given subsidies that is helping them in the market, whereas Airbus backed European nation came up with the allegation that Boeing is given unfair tax advantage by the USA. As a result, the dispute got created and both the companies backed by their nations, reached to WTO.

In WTO, it was recognised that Boeign was given the unfair tax breaks and other benefits that helped Boeing in the international market.

Rahul Sunny answered 1 year ago

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