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Actionable subsidies found by the WTO Panels (in billions)

 

European subsidies

Alleged U.S. subsidies

Launch aid/ Member state financing

LA/MSF for the A300/310, A320, A330/340, and A380

$14.9

 

 

None

$0

 

Research and development

EU Framework Programmes

$1.0**

 

NASA

$2.6

French, German, Spanish R&D

0.1

 

Department  of Defense

$0.11

Infrastructure

Hamburg

$1.0

 

None

$0

Toulouse

$0.21

Bremen

**

Germany & Spain (regional grants)

$0.27

Equity infusions

French government (1987-1994)

$1.23

 

None

$0

German government (1989-1992)

$0.35

French government (1998)

$1.1

Tax reductions

None

$0

 

Washington B&O tax

$0.02

 

FSC/ETI

$2.2*

 

 

 

 

 

 

Subsidies to withdraw

Subsidies that Europe must withdraw:

$20.1 billion**

 

Subsidies that the United States must withdraw:

$2.7 billion*

* The Panel found that the United States already eliminated FSC/ETI, and did not recommend that the United States remove the subsidy again.

** Omits confidential data – actual number is higher

Sources:

European subsidies

$14.9 billion in LA/MSF  EC – Large Civil Aircraft, para. 7.380; and publicly available information as to the A380 cited in the United States’ First Written Submission footnotes 286, 299, 312 and 322 (available at: http://www.ustr.gov/sites/default/files/uploads/Countries Regions/africa/agreements/pdfs/dispute_settlement/ds316/asset_upload_file292_10235.pdf).

$1.1 billion in research and development  EC – Large Civil Aircraft, paras. 7.1971 (estimating EU, German and French R&TD funding alone (i.e., excluding Spain and UK) to have been “approximately twice the amount [of the] EUR 381” advocated by the EU); 7.1480 (finding Spanish research support on the PROFIT program to have been roughly €62 million).

Infrastructure worth $1.0 billion from Hamburg, $210 million from Toulouse, $270 million from Germany and Spain  EC – Large Civil Aircraft, paras. 7.1089 (€750 million), 7.1144 (€158 million) and 7.1972 (€200 million).

$1.23 billion of equity from France  EC – Large Civil Aircraft, paras. 7.1324 and 7.1325 (FF 1.25 billion in 1987, FF 1.25 billion in 1988, FF 1.4 billion in 1992, and FF 2 billion in 1994)

$350 million in equity from Germany  EC – Large Civil Aircraft, paras. 7.1248 and 7.1302 (KfW transfer worth DM 505 million)

$1.1 billion of equity from France EC – Large Civil Aircraft, paras. 7.1407 and 7.1414 (Dassault share transfer worth FF 5.28 billion)

(All foreign currency figures were converted into dollars using the average exchange rate for February, 2011, as reported by the U.S. Federal Reserve, http://www.federalreserve.gov/releases/g5/current)

Alleged U.S. subsidies

$2.6 billion in NASA research and development  US – Large Civil Aircraft, para. 7.1433.

$110 million in DoD research and development  The Panel found that only payments under certain types of agreements were subsidies, and that adverse effects resulted only from agreements issued under 3 of the 23 DoD programs challenged by the EU.  US – Large Civil Aircraft, paras. 7.1171 and 7.1701.  The Panel did not make its own estimate.  US – Large Civil Aircraft, para. 7.1203.  However, the EU submitted estimates of how much DoD spent under each program, and how much of that amount should be attributed to Boeing.  Exhibits EC-7 and EC-25, cited in US – Large Civil Aircraft, paras. 7.1911 and 7.1203, notes 2789 and 2791.  This figure is based on the amounts estimated by the EU for the three DoD programs that the Panel found were causing adverse effects.

$20 million in Washington state B&O tax adjustment  US – Large Civil Aircraft, para. 7.1811 (state B&O tax reduction of $13.8 million and City of Everett B&O tax reduction of $2.2 million)  The Panel found that other subsidies from state, county, and municipal governments in Washington were consistent with WTO rules because they did not cause adverse effects.  US – Large Civil Aircraft, paras. 7.1834, 7.1855

$2.2 billion in FSC/ETI  US – Large Civil Aircraft, para. 7.1433.