WTO sets up panels to investigate US-EU plane subsidies

The World Trade Organization (WTO) on Wednesday set up panels to investigate illegal subsidies allegedly paid by the European Union and the United States to rival airplane makers Airbus and Boeing Co..

"Two panels have been established," said a WTO official.

The dispute involving the EU's Airbus and the US Boeing over billions of dollars is likely the biggest, most complicated and costly legal dispute in WTO history.

The United States lodged a complaint to the WTO against the EU for its subsidies to the France-based Airbus in October last year, triggering a counteraction from Europe against what it termed indirect US government aid for the Chicago-based Boeing.

On Jan. 11 of this year, the two sides agreed to resolve the subsidy dispute over a three-month negotiation period, deferring the case they had brought before the WTO.

However, negotiations failed to solve the problem. On May 31, both sides resumed their complaints to the WTO.

Source: Xinhua