Tuesday, June 15, 2021

Will the longest WTO dispute come to an end?

One of the longest and most complex WTO disputes - the Airbus-Boeing dispute - seems to be reaching a settlement. Or atleast that is what the Financial Times reported today. I have earlier blogged about it here, here and here.

The Airbus-Boeing dispute is one of the longest running battles in the history of the World Trade Organization — a disagreement both sides have acknowledged they could increasingly ill-afford as they seek to forge closer co-operation in dealing with China’s model of state capitalism. 

The importance of a deal has been emphasied here. Will it be a front runner for a set of principles for subsidies in the aviation sector? Will the deal, if it comes through, be a sign for the next transatlanticco-operation - reform in the multilateral trading system? 

What would the deal entail? What has the role of the WTO dispute settlement been in bringing about this deal? Have the threats and implementation of retaliatory measures been the motivation for a deal or is a threat of being left behing by other economies in the aviation sector been a consideration?

Whatever the motivations, the deal will signal the end of a complex dispute that has engaged governments, the aviation bigwigs as well as many international trade law experts for nearly two decades!

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