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Essay / Research Paper Abstract
This 3 page paper looks at the Airbus and Boeing controversy that took place beginning in 2004. The relationship with WTO rules is explored. Bibliography lists 3 sources.
Page Count:
3 pages (~225 words per page)
File: RT13_SA647WTO.rtf
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Unformatted sample text from the term paper:
about the European Union ("U.S. Embarks on Trade Fight with Europe," 2004). The charge was that the EU would give government subsidies to Airbus and this is unfair ("U.S. Embarks
on Trade Fight with Europe," 2004). The EU claimed that Boeing receives a great deal of subsidies from the U.S. government ("U.S. Embarks on Trade Fight with Europe," 2004). If
both charges are true, it would mean that the playing field is level. Of course, to use an analogy, if every sports professional used steroids, it would not render the
game fair. Along those lines of thinking, it would follow that neither Boeing or Airbus should receive the funding. Both organizations have violated international rules of trade. The
funding that Boeing receives supposedly violates an accord that is about ten years old ("U.S. Embarks on Trade Fight with Europe," 2004). Both countries would file a complaint with the
WTO ("U.S. Embarks on Trade Fight with Europe," 2004). Experts say that the case is at a fundamental level attached to international trade law ("U.S. Embarks on Trade Fight with
Europe," 2004). This is a dispute that will seemingly test the credibility of the World Trade Organization which is really the authority that can enforce international trade laws ("U.S. Embarks
on Trade Fight with Europe," 2004). Indeed, if nothing is done, it makes the WTO look weak. Both firms have violated the rules and there is little dispute about that.
Gary Hufbauer, who is aligned with the Institute for International Economics says: "If either side is found to have violated the terms of the accord they signed in
1992, which limited subsidies, remedies could include "countermeasures" such as allowing the aggrieved country to impose tariffs on airplanes and certain other goods" ("U.S. Embarks on Trade Fight with Europe,"
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