Question

Why did the U.S. government decide to reopen the long-running trade dispute between Boeing
and Airbus in 2004? Do you think the U.S. position is reasonable? What about the EU’s
countercharges

Answer 1

A long running trade dispute between US and Europe has reached its zenith.Both the US and the Europe complained about each other's subsidies to airline manufacturers for many years.US then decided to go back to court with the case against Europe andAirbus at the world trade organization and thus end the truce .

Boeing is very much important to the US government and is the most important company in the US.Boeing company was very much hurt because Airbus , their rival was getting a lot of government subsidy from the Europeans .Boeing then came up with their new plane , the 787 Dreamliner.Airbus immediately informed about the launching of their new plane with Britain and Spain subsidy or subsidy from France  and Germany.This scared the US government and so they decided to reopen the case.

The WTO has found that the world's two largest planemakers had received unfair subsidies amounting to billions of dollars dating back to 2004 and so both sides would impose tariffs beginning with US.The WTO maintained that some European aid provided to Airbus, violated a ban on exports subsidies.The WTO clears the case for US of giving unfair support to Boeing.. So I think US is reasonable.  

In the EU counter charges that stated $19 billion support for Boeing from US , NASA and different states and municipalities , the WTO partially supported the EU thus ruling against aid for Boeing worth $ 5.3 billion.