In addition, Airbus` market share increased significantly over the life of the agreement. Their market share had already increased from 16% in 1988 to 30% in 1990 before the agreement was signed; It reached 50% in 1999. Meanwhile, McDonnell Douglas` market share fell rapidly, culminating in Boeing`s acquisition of the company in 1997. Airbus` success in acquiring additional market share is illustrated by the goals it has set itself throughout its life: in 1975, Airbus wanted to gain 30% of the global aerospace market. In 1994, it declared that as much as 50% would do so. It has exceeded that goal. “The 1992 agreement was negotiated after the United States won proceedings against EU subsidies to Airbus and pursued another case within the GATT system that preceded WTO dispute settlement procedures,” Zoellick added. “The United States is still interested in an agreement that puts an end to all new subsidies. In the future of this case, we are open to the negotiation of a new agreement, as long as it puts an end to the new subsidies. In 1997, the merger between Boeing and McDonnell Douglas by the EC was linked to Boeing`s commitment to grant Airbus any “state-funded patent” that could be used for the manufacture or sale of large civil aircraft. Airbus has no similar obligation to share with Boeing the fruits of state-funded technology.
The United States has attempted to incorporate such mutual engagement into a new bilateral agreement. 8.9. The parties exchange the above information annually, unless otherwise stated. Disagreement over the information to be provided under this article is resolved through consultations in accordance with Article 11. In recent months, the United States has asked the European Commission to negotiate a new agreement to replace the United States and the EU in 1992. Agreement on large civil aircraft. The agreement limits some state aid, including limiting the development costs of a new aircraft to one-third. While the United States remains committed to resolving this issue through the negotiation of a new bilateral agreement, we have come to the conclusion that the filing of a WTO case is necessary at this stage to ensure, in one way or another, the establishment of the conditions of competition. The WTO is setting up an agreed multilateral forum for the settlement of trade disputes in accordance with agreed rules. Boeing is the leading U.S. aircraft manufacturer, and Airbus is the main competitor. When the 1992 agreement was negotiated, Airbus represented only about 30% of the global market.
Today, it accounts for more than 50% of this market. It is clear that the 1992 agreement has survived its usefulness. “American farmers, workers and businesses can compete against anyone as long as there is a level playing field. The end of this agreement reinforces our conviction that it is time to end subsidies, ideally through a new agreement. We remain open to taking into account Europe`s concerns about the public assistance they expect to receive. It is in the interests of Europe and the United States to find a lasting solution to this long-standing problem,” Zoellick said.
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