Boeing (BA) Should Be Victorious Over Airbus In Illegal Subsidy Case, But Does It Matter?

The World Trade Organization is expected to rule Friday that European governments illegally subsidized Airbus aircrafts, in the first significant ruling in a long-running trans-Atlantic trade dispute, according to the WSJ. The WSJ spoke to trade officials, lawyers and executives from both sides.

The U.S. filed the Airbus case in 2004, alleging EU member states gave illegal subsidies to Airbus. The EU quickly launched a similar case against the U.S., alleging that the U.S. illegally subsidized Boeing (NYSE: BA). The EU case against Boeing is under review. A preliminary ruling may be months away.

"This case could run for years, and nothing will be settled through a trade fight," said Airbus spokeswoman Maggie Bergsma. Airbus officials, who have proposed talks for a settlement with Boeing since 2005, say they will wait for rulings on both the U.S. and EU cases before entering any discussions.

So although Boeing will likely be victorious, nothing will change in how Airbus and Boeing compete in the near future.

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