It's a Bird, It's a Plane: Some Remarks on the Airbus Appellate Body Report (EC and Certain Member States – Large Civil Aircraft, WT/DS316/AB/R)

Details

Serval ID
serval:BIB_BF61755B0561
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
It's a Bird, It's a Plane: Some Remarks on the Airbus Appellate Body Report (EC and Certain Member States – Large Civil Aircraft, WT/DS316/AB/R)
Journal
World Trade Review
Author(s)
Hahn Michael, Mehta Kirtikumar
ISSN
1474-7456
1475-3138
Publication state
Published
Issued date
2013
Peer-reviewed
Oui
Volume
12
Number
02
Pages
139-161
Language
english
Abstract
The emergence of Airbus transformed the market structure of the LCA industry into a duopoly of similar-sized full-range manufacturers. The financing of Airbus's upfront investment expenditures came in a significant proportion from public funds, which violated, in the US's opinion the SCM Agreement. While the Appellate Body follows this view of things to a large extent, it does so in a measured way: the category of per se illegal export subsidies is interpreted with a view to the manipulation of normal market conditions; the distortion on competitive conditions matters, not the increase of exports as such. Other aspects of subsidies law clarified are the relationship between effect and subsidy. They are closely related but not identical; rightly, the report operates from the premise that the SCM Agreement's regime focuses on the effect, and not on the subsidy as such, which is a manifestation of a political choice by a sovereign Member state. The Appellate Body affirms that a subsidy has a ‘life’, a shorthand for a beginning and an end: it follows that the effect of a subsidy is not bound to be permanent but is bound to terminate. It is to be regretted that the Appellate Body avoided clarifying to what extent partial privatization, hence sale of assets at market prices to private investors, ‘extinguish’ subsidies.
Web of science
Open Access
Yes
Create date
16/07/2018 14:45
Last modification date
20/08/2019 15:33
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