Friday, April 6, 2012
U.S. Threatens Sanctions on European Union
Earlier this week I read about a new threat of sanctions issued by the United States to the World Trade Organization that could potentially eliminate between $7 billion to $10 billion worth of trade. The issue arose after the U.S. learned that illegal funding of airline manufacturer Airbus was being granted by European nations. The block of funding to Airbus was the result of a 2004 ruling by the WTO due to the conflicting production of Boeing aircraft in the U.S. Since this block went into effect, it is claimed that the EU has provided Airbus with over $18 billion in funding. I respect the fight that the U.S. government is putting up to help create more manufacturing in our country, but I also think that it is unfair to prevent competition in the free, global market. Our capitalist economy is founded on this type of competition so I find it odd that our government is taking this case so far. Even though there will not be any decision made on this issue for at least a year, this move by the U.S. must definitely have EU nations questioning their relationship with the U.S. When the WTO places these kinds of rules in place, it is understandable that they should be enforced, but my concern is that our government is risking the relationships of many of its strongest allies over a battle that even if won, might not justify the risks.
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