Russia's WTO Membership Faces Rocky Road

Russia remains the only major world economy that is not a member of the World Trade Organization (WTO).  In large part, this is because Russia's major export, oil, is already tariff free around the world, so Russia hasn't felt the pressure to join the WTO in order to obtain market access for its companies.  However, foreign investors are increasingly putting pressure on Moscow to enter the global group.  Entry is supposed to happen in 2011, but it won't be easy.  Russia still has steep tariffs, high levels of corruption, and customs controversies over goods valuations that will cause Russia many more transition problems than China, which entered the WTO in 2000.


Russia's WTO Membership Faces Rocky Road - WSJ.com

WTO finds Boeing got billions in illegal subsidies, but how many billions?

While most are familiar with the bruising battle between Airbus and Boeing for market share as the only two competitors left in the large passenger jet market, with new competitors from Canada, Brazil, and China in the small passenger market nipping at their heels, it is the legal battle at the WTO between the two giants that is drawing the most blood.  Boeing and Airbus have been tied up in WTO litigation for years, each accusing the other of receiving various forms of subsidies from governments, all of which are illegal under WTO rules.  Boeing won a key victory last year when the WTO ruled Airbus did receive illegal aid, but this week the WTO signaled it would be handing Airbus a victory as well.  There are still major disagreements over which side received more subsidies, and over what to do next.

WTO finds Boeing got billions in illegal subsidies, but how many billions?

W.T.O. Upholds Tariffs on Tires From China

Last year the Obama administration imposed tariffs of up to 35% on tires from China, arguing that the surge in imports had threatened domestic manufacturing.  China's ascession agreement into the WTO included a special safeguard section that allows the U.S. to make this argument, and this case marks the first time the U.S. has invoked this section of the WTO agreement.  Unlike traditional antidumping case, the U.S. only had to demonstrate that U.S. companies suffered "market disruption" from imports.  This week, a WTO dispute resolution panel ruled that the U.S. tire tariffs were legitimate and legal.  China vows to appeal the ruling.


W.T.O. Upholds Tariffs on Tires From China - NYTimes.com

Boeing Received Illegal Aid, WTO Says

A preliminary report by a WTO dispute panel ruled that Boeing received illegal aid from the federal government as well as Washington state.  Airbus is jumping on the report claiming that it vindicates their claim of illegal aid to Boeing, but Boeing and American officials are urging restraint until the report is made public
Boeing Received Illegal Aid, WTO Says - WSJ.com

EU Ordered to Remove High-Tech Tariffs

The 1996 Information Technology Agreement required 70+ countries to reduce tariffs on high tech goods to 0%. The European Union refused to drop tariffs on three HTS categories: cable television boxes that also deliver Internet content, flat panel computer screens, and printers that can also scan, fax or copy. These products were subject to a tariff of 6-14%, leading to higher prices in the E.U. for imported products in these categories. In 2008, the U.S., Japan and Taiwan filed suit against the E.U. in the WTO arguing these tariffs were illegal, and this week the WTO handed the three countries a victory, ordering the EU to bring their tariffs into line with the agreement. The EU now has 60 days to appeal.


EU Ordered to Remove High-Tech Tariffs - WSJ.com

W.T.O. Rules Against Aid to Airbus Jets

The WTO has ruled that launch aid to Airbus to develop the A380 was illegal. The launch aid, mainly in the form of loans that did not have to be repaid if the program didn't make any money, helped Airbus leap ahead of Boeing in 2003 in number of jets sold. If Airbus does not pay back the launch aid, the U.S. could retaliate by imposing tariffs on a wide variety of European goods. Still to be decided is Airbus' counter-suit alleging illegal U.S. subsidies to Boeing. That decision is expected later this year.
W.T.O. Rules Against Aid to Airbus Jets - NYTimes.com