WTO ruling on Boeing subsidies expected Sept 15

WASHINGTON, Sept 7 | Tue Sep 7, 2010 5:49pm EDT

WASHINGTON, Sept 7 (Reuters) - The World Trade Organization will release a long-awaited ruling next week on whether U.S. government support for Boeing (BA.N) violates global trade rules, sources familiar with the matter said on Tuesday.

The sources, who spoke on condition they not be identified, said the WTO was expected to give the confidential report to U.S. and European Union officials on Sept. 15.

The ruling is part of a long-running battle between the United States and the European Union over government support for rival aircraft manufacturers Boeing and Airbus (EAD.PA).

In June, the WTO issued a public ruling that certain European government support for Airbus ran afoul of WTO rules, about nine months after the decision was given confidentially to the two parties.

EU and Airbus officials have argued the upcoming report will give a fuller picture of government support on both sides of the Atlantic. However, complete details of the ruling may not be made public until mid-2011.

Many expect the two sides to eventually negotiate a new agreement to resolve the spat.

However, the United States has a slight tactical advantage because it would be in a position to impose trade retaliation earlier than the EU if the U.S. victory against Airbus subsidies is upheld on appeal.

(Reporting by Doug Palmer; Editing by Eric Beech)

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