Extinction Event: Subsidies Extinction in EC – Aircraft


Kathleen Benner

Case Note

Abstract: Subsidies have proven to be a particularly contentious area of international trade law. Disputes over trade subsidies have involved billions of dollars and implicated major industries—including the aircraft industry in particular—whose members have much riding on the outcome beyond the dollar amounts in question.  This Case Note provides an overview of the economic and legal dimensions of subsidies, specific efforts to address subsidy disputes over large civil aircraft (LCAs), and World Trade Organization (WTO) case law on subsidy extinction.  This piece then examines the dispute settlement bodies’ arguments over subsidies extinction in European Communities and Certain Member States – Measures Affecting Trade In Large Civil Aircraft, a landmark WTO dispute over European subsidies to Airbus.