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WTO rules Boeing had illegal subsidies
By Peggy Hollinger in Paris, Nikki Tait in Brussels, Hal Weitzman in Chicago and Robin Harding in Washington
Published: January 31 2011 22:23 | Last updated: January 31 2011 22:23
Boeing’s flagship 787 Dreamliner has benefited from illegal US government subsidies that have distorted market competition, according to the World Trade Organisation.
The ruling, which will not be published for several weeks, marks a key moment in a bitter six-year trade dispute that has pitched the European Union against the US over the funding of their respective aircraft makers.
EDITOR’S CHOICE
Dreamliner delays to hit Boeing profits - Jan-26.Southwest warns on switch to Airbus - Jan-20.Boeing pushes back Dreamliner delivery - Jan-18.Airbus edges ahead of Boeing in orders - Jan-17..In June, the WTO ruled that Airbus, the Franco-German aircraft maker, had also benefited from illegal aid in the form of repayable loans linked to export sales in the development of its A380 superjumbo.
The two rulings will now step up the pressure on politicians from both sides to negotiate a settlement and find a new agreement on the acceptable form for state aid.
The current row, the largest trade dispute ever brought before the WTO, was sparked when the US government abandoned a previous accord hammered out in 1992.
But the arrival of new, aggressive competitors, such as Brazil and China, is making the need for common rules on the financing of new aircraft more pressing, say industry executives.
The European Commission welcomed the findings, which will remain confidential until formally published in the next few weeks. A spokesman for EU trade commissioner Karel de Gucht said it was a “solid report” that “sheds further light on the negative consequences for the EU industry of these US subsidies and provides a timely element of balance in this long-running dispute”.
Airbus claimed that the ruling found at least $5bn in US government aid illegal – much of which was channelled through the Department of Defense and the Nasa space agency.
In addition, a further $2bn in state and local subsidies were deemed unfair, the group said. The aircraft maker said the report would show that Boeing could not have launched its rival to Airbus’s A380, the 787 Dreamliner, without this illegal aid, which it claimed had cost it $45bn in lost sales.
Boeing said the report would show that the WTO had rejected almost all of Europe’s claims against the US, including the vast majority of its R&D claims. “Nothing in today’s reports even begins to compare to the $20bn in illegal subsidies that the WTO found last June that Airbus/EADS has received,” it said.
The US government also rejected the European claim of victory. Nefeterius McPherson, spokesman for Ron Kirk, the US trade representative, said the US was “confident that the WTO will confirm the US view that European subsidies to Airbus dwarf any subsidies that the US provided to Boeing.”
Both sides are appealing against the WTO’s decision last year on European aid to Airbus. They are also expected to appeal against the latest decision on US aid to Boeing. Each side will have 60 days to appeal.
.Copyright The Financial Times Limited 2011. You may share
Monday, January 31, 2011
Alberta-tar-sands-trade-agreement
http://www.guardian.co.uk/environment/2011/jan/31/alberta-tar-sands-trade-agreement
Trade talks between Europe and Canada could leave the door open to companies suing states for losses incurred by efforts to fight climate change, campaigners claimed today.
The warning, backed by an MEP and a law expert, came as 10 protesters unsuccessfully attempted to talk to the Canadian energy minister, Ron Liepert, this morning during a visit to London for a meeting with Lord Howell, the UK minister for the Commonwealth.
Liepert is visiting the UK and Belgium to promote tar sands in the Canadian province of Alberta as a "leading source of secure energy". The protesters tried unsuccessfully to gain access to the Canadian high commission on Grosvenor Square.
Concern is focused on the Comprehensive Economic Trade Agreement (Ceta), a trade deal which Canada and the EU have been negotiating for the last two years and which they hope to finally sign in 2012. Campaigners say Ceta could affect governments' rights to regulate themselves and could also open the door for tar sands oil to be imported into Europe.
The agreement, which is in draft form, includes a clause allowing corporations to sue states for compensation if they feel their earnings have been unfairly compromised. Campaigners fear the agreement would give investors leverage against proposed changes to the EU fuel quality directive, which MEPs are reviewing to decide if it should discriminate against carbon-intensive fuel, such as tar sands oil.
"The proposed trade agreement between Canada and the EU will have a substantial impact on efforts to address the local, regional and global impacts of oil sands developments," was the conclusion drawn by lawyer
Trade talks between Europe and Canada could leave the door open to companies suing states for losses incurred by efforts to fight climate change, campaigners claimed today.
The warning, backed by an MEP and a law expert, came as 10 protesters unsuccessfully attempted to talk to the Canadian energy minister, Ron Liepert, this morning during a visit to London for a meeting with Lord Howell, the UK minister for the Commonwealth.
Liepert is visiting the UK and Belgium to promote tar sands in the Canadian province of Alberta as a "leading source of secure energy". The protesters tried unsuccessfully to gain access to the Canadian high commission on Grosvenor Square.
Concern is focused on the Comprehensive Economic Trade Agreement (Ceta), a trade deal which Canada and the EU have been negotiating for the last two years and which they hope to finally sign in 2012. Campaigners say Ceta could affect governments' rights to regulate themselves and could also open the door for tar sands oil to be imported into Europe.
The agreement, which is in draft form, includes a clause allowing corporations to sue states for compensation if they feel their earnings have been unfairly compromised. Campaigners fear the agreement would give investors leverage against proposed changes to the EU fuel quality directive, which MEPs are reviewing to decide if it should discriminate against carbon-intensive fuel, such as tar sands oil.
"The proposed trade agreement between Canada and the EU will have a substantial impact on efforts to address the local, regional and global impacts of oil sands developments," was the conclusion drawn by lawyer
Saturday, January 29, 2011
Tuesday, January 25, 2011
Cable :Brazil ,Oil,& Trade Concessions
Cable Viewer
SUBJECT: AMBASSADOR DISCUSSES BRAZILIAN OIL CONCESSION MODEL WITH DELFIM NETTO
the concession model and even more unlikely that it would choose to change the rules on existing concessions. Political and economic stability have been the cornerstones of Brazil's policies and largely led to Brazil obtaining investment grade status (Ref D). While some modification of exploration and concession rules may take place for these new "mega fields", it is doubtful the GOB would do anything to undermine the overall image of Brazil as a stable country in which to invest.
¶7. (C) Unlike Delfim Netto's view that the USG should hold off on intervening to establish these new rules, Brazil's Ministry of Mines and Energy, regulators, and US energy companies have suggested that it could instead be within this period for the USG to intervene. Indeed, Petrobras' interest in consolidating deep-sea drilling in the Gulf of Mexico and vertical integration in the US market could open an important window of opportunity for the USG. Furthermore, ANP has expressed interest in learning more about US small and medium sized energy companies operating in US states to develop a similar capacity in Brazil. They have, in fact, asked for USG assistance to travel to the US to meet with and further learn about this important part of the energy equation. Clearly, Brazil's energy sector offers new partnerships, opportunities, and increased energy security for the US. As Brazil begins to increase exploration of its newfound "pre-salt" reserves that many believe could be larger than the finds in the North Sea, the US could potentially capitalize on these new technologies to develop our own offshore exploration efforts. Early engagement may be crucial to ensuring that US firms will have opportunities in this market. END COMMENT
SUBJECT: AMBASSADOR DISCUSSES BRAZILIAN OIL CONCESSION MODEL WITH DELFIM NETTO
the concession model and even more unlikely that it would choose to change the rules on existing concessions. Political and economic stability have been the cornerstones of Brazil's policies and largely led to Brazil obtaining investment grade status (Ref D). While some modification of exploration and concession rules may take place for these new "mega fields", it is doubtful the GOB would do anything to undermine the overall image of Brazil as a stable country in which to invest.
¶7. (C) Unlike Delfim Netto's view that the USG should hold off on intervening to establish these new rules, Brazil's Ministry of Mines and Energy, regulators, and US energy companies have suggested that it could instead be within this period for the USG to intervene. Indeed, Petrobras' interest in consolidating deep-sea drilling in the Gulf of Mexico and vertical integration in the US market could open an important window of opportunity for the USG. Furthermore, ANP has expressed interest in learning more about US small and medium sized energy companies operating in US states to develop a similar capacity in Brazil. They have, in fact, asked for USG assistance to travel to the US to meet with and further learn about this important part of the energy equation. Clearly, Brazil's energy sector offers new partnerships, opportunities, and increased energy security for the US. As Brazil begins to increase exploration of its newfound "pre-salt" reserves that many believe could be larger than the finds in the North Sea, the US could potentially capitalize on these new technologies to develop our own offshore exploration efforts. Early engagement may be crucial to ensuring that US firms will have opportunities in this market. END COMMENT
Innovative Sustainability Instruments for the Green Economy: A Law & Policy Experts Panel on Strengthening Carbon Markets by Integrating the Environmental and Social Impacts of Trade & Investment
ICTSD Symposium on the Role of Trade and Markets in Addressing Climate Change and Sustainable Development at the COP16
Held on Thursday, 09 Dec 2010, Hotel Azul Sensatori, Cancun, Mexico
Summary
This law and policy experts panel focused on the role that new instruments, such as impact assessments and carbon pricing tools, can play in helping to address climate change and secure more sustainable development. It addressed questions such as what key climate change challenges have been raised in recent impact assessments of trade and investment treaties, and how are new market based instruments being deployed to address them; how can these instruments support the transition to a low carbon economy and harness trade & investment for sustainable development; and what can be learned from recent EU, Canada and US experiences, and from policy experiments in developing countries. To access the report please click here.
ICTSD Symposium on the Role of Trade and Markets in Addressing Climate Change and Sustainable Development at the COP16
Held on Thursday, 09 Dec 2010, Hotel Azul Sensatori, Cancun, Mexico
Summary
This law and policy experts panel focused on the role that new instruments, such as impact assessments and carbon pricing tools, can play in helping to address climate change and secure more sustainable development. It addressed questions such as what key climate change challenges have been raised in recent impact assessments of trade and investment treaties, and how are new market based instruments being deployed to address them; how can these instruments support the transition to a low carbon economy and harness trade & investment for sustainable development; and what can be learned from recent EU, Canada and US experiences, and from policy experiments in developing countries. To access the report please click here.
Water on BNN
While Canada has the most fresh water in the world, what are the risks that need to be managed to keep that supply clean and abundant? Headline speaks with Sandra Odendahl, Director of Corporate Environmental Affairs at RBC Financial Group; Richard Whittaker, Vice-President, Sustainable Development Technologies Canada; and Dr. Anthony Watanabe, President & CEO of Innovolve Group
Module 3-Investment law and Trade Law
In this section, the instructors will present learning modules related to economic growth and prosperity; global, regional and bilateral trade law; international investment agreements; cross-border transactions; and international financial rules and the credit crisis.
The economic growth and prosperity section will address key concepts such as the definition of trade, and key trade theories. The global, regional and bilateral trade law section will provide an overview of the key principles and rules of global, regional, and bilateral trade agreements, highlighting emerging trends of relevance to the practice of law in Canada. These regimes include the World Trade Organisation, NAFTA, and Canadian bilateral trade agreements. The international investment agreements section will provide an overview of the development of international investment agreements and investment chapters of trade agreements, of Canadian involvement in international investment agreements and bilateral investment agreements, highlighting emerging trends of relevance to the practice of law in Canada. The cross-border transactions section will provide an overview of the rules governing Canadian-US cross-border transactions, highlighting emerging trends of relevance to the practice of law in Canada. Finally, the international financial rules and the credit crisis section will provide an overview of legal elements of the recent credit crisis and the emerging international financial rules stemming from the credit crisis, highlighting emerging trends of relevance to the practice of law in Canada.
The economic growth and prosperity section will address key concepts such as the definition of trade, and key trade theories. The global, regional and bilateral trade law section will provide an overview of the key principles and rules of global, regional, and bilateral trade agreements, highlighting emerging trends of relevance to the practice of law in Canada. These regimes include the World Trade Organisation, NAFTA, and Canadian bilateral trade agreements. The international investment agreements section will provide an overview of the development of international investment agreements and investment chapters of trade agreements, of Canadian involvement in international investment agreements and bilateral investment agreements, highlighting emerging trends of relevance to the practice of law in Canada. The cross-border transactions section will provide an overview of the rules governing Canadian-US cross-border transactions, highlighting emerging trends of relevance to the practice of law in Canada. Finally, the international financial rules and the credit crisis section will provide an overview of legal elements of the recent credit crisis and the emerging international financial rules stemming from the credit crisis, highlighting emerging trends of relevance to the practice of law in Canada.
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