WORLD TRADE  
ORGANIZATION   
WT/DS316/17 
5 December 2011 
 
 (11-6317) 
 Original:   English 
  
 
EUROPEAN COMMUNITIES AND CERTAIN MEMBER STATES – 
MEASURES AFFECTING TRADE IN LARGE CIVIL AIRCRAFT 
 
Communication from the European Union
 
 
  The following communication, dated 1 December 2011, from the delegation of the European Union to the Chairperson of the Dispute Set tlement Body, is circulated at the request of that 
delegation. 
  
_______________ 
 
 
1. The European Union refers to the recomme ndations and rulings of the WTO Dispute 
Settlement Body (DSB) with respect to the dispute European Communities and Certain Member 
States – Measures Affecting Trade in Large Civil Aircraft (WT/DS316).   The European Union would 
like to inform the DSB that it has taken appropriate steps to bring its measures fully into conformity 
with its WTO obligations, and to comply with the DSB's recommendations and rulings. 
2. In considering appropriate steps to bring its measures into conformity with its WTO 
obligations, the European Union took note of all elements of the DSB's recommendations and rulings, 
including, in particular, the Appellate Body's gui dance on the way in which subsidies and adverse 
effects expire, dissipate, terminate or are otherwis e removed or withdrawn.  In undertaking this 
review, we consulted, among others , independent experts in:  financ ial economics; investor behaviour; 
financial and cost auditing, accoun ting and controlling; product engin eering; and Large Civil Aircraft 
(LCA) fleet management.  We have also clo sely monitored and assessed LCA product and market 
developments in the months and years followi ng the period covered by the Panel's review. 
3. As a result of this review, the European Uni on has adopted a course of action that addresses 
all forms of adverse effects, all categories of subsid ies, and all models of Ai rbus aircraft covered by 
the DSB's recommendations and rulings. 
4. Specifically, in bringing its measures into confor mity with its WTO obligations, the European 
Union has addressed all categories of subsidy cove red by the DSB's recommendations and rulings:  
Member State Financing (MSF) loans, capital contri butions, infrastructure support and regional aid.  
Amongst others, the European Union has secured repayment of MSF loans and terminated MSF 
agreements, increased fees and lease payments on infrastructure support to accord with market 
principles, and ensured that capital contributions and regional aid subsidies have, in the Appellate 
Body's words, "come to an end" and are no longer capable of causing adverse effects.  Additionally, 
the course of action adopted by the European Uni on affects Airbus' A300, A310, A320, A330, A340 
and A380 aircraft, as well as derivatives thereof,  as implicated by the DSB's recommendations and 
rulings.  Finally, as a result of these steps and othe r intervening market even ts, the European Union 
                                                      
 Formerly the EC. WT/DS316/17 
Page 2 
 
 
  has addressed the forms of adverse effects covere d by the DSB's rulings.  Information concerning the 
steps that have been taken by the European  Union is provided in the attached list. 
5. In short, by having taken appropriate steps to  bring our measures into conformity with our 
WTO obligations, as required by Article 7.8 of the SCM Agreement and Article 19.1 of the DSU, the 
European Union has ensured full implementati on of the DSB's recommendations and rulings. 
 
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  WT/DS316/17 
 Page 3 
 
 
  1. Termination of French MSF agreement for A300B; 
2. Termination of French MSF agreement for A300B2/B4; 
3. Termination of French MSF agreement for A300-600; 
4. Termination of German MSF agreement for A300B; 
5. Termination of German M SF agreement for A300B2/B4; 
6. Termination of German MSF agreement for A300-600; 
7. Termination of Spanish MSF agreement for A300B; 
8. Termination of Spanish MSF agreement for A300B2/B4; 
9. Termination of Spanish MSF agreement for A300-600;  
10. Termination of French MSF agreement for A310; 
11. Termination of French MSF agreement for A310-300; 
12. Termination of German MSF agreement for A310; 
13. Termination of German MSF agreement for A310-300; 
14. Termination of Spanish MSF agreement for A310; 
15. Termination of Spanish MSF agreement for A310-300;  
16. Termination of French MSF agreements for A320; 
17. Termination of German MSF agreement for A320; 
18. Termination of Spanish MSF agreement for A320; 
19. Termination of French MSF agreement for A330/A340 Basic;  
20. Termination of German MSF agreement for A330/A340 Basic;  
21. Termination of Spanish MSF agreement for A330/A340 Basic; 
22. Termination of French MSF agreement for A330-200; 
23. Termination of French MSF agreement for A340-500/600; 
24. Termination of Spanish MSF agreement for A340-500/600; 
25. Payment by Airbus, other than on deliveries under previously existing contractual terms, with 
respect to outstanding MSF obligations in the amount of approximately EUR 1,704,775,000; WT/DS316/17 
Page 4 
 
 
  26. Bringing "to an end"1 the 1987, 1988, 1992 and 1994 French capital contributions into 
Aérospatiale; the 1989 capital contribution by Kred itanstalt für Wiederaufbau ("KfW") into Deutsche 
Airbus GmbH and the subsequent 1992 transfer of  KfW's shares; the French MSF agreements for the 
A300B, A300B2/B4, A300-600, A310, A310-300, A320, A330/A340 Basic, A330-200 and A340-
500/600; the German MSF agreements for the A300B, A300B2/B4, A300-600, A310, A310-300, 
A320 and A330/A340; the Spanish MSF agreements for the A300B, A300B2/B4, A300-600, A310, A310-300, A320, A330/A340 Basic and A340-500/ 600; the UK MSF agreements for the A320 and 
A330/A340 Basic; the regional development grant fo r an A380-related facility of Airbus Deutschland 
GmbH (now Premium AEROTEC GmbH)  in Nordenham, Germany; and, the regional development 
grants for largely A380-related facilities of EADS /CASA in Tablada and Puerto de Santa Maria, 
Spain, and of Airbus España, S.L. (now Airbus Op erations, S.L.) in Illescas and Puerto Real, Spain; 
27. Isolation of Spanish regional development grants to the EADS/CASA facility at La 
Rinconada/San Pablo, Spain, from use for LCA purposes; 
28. Amendment of take-off and landing fee schedule fo r use of the runway extensions at Bremen 
Airport; 
29. Amendment of the lease agreement between Airbus Deutschland GmbH  and 
Projektierungsgesellschaft Finkenwerder mbH & Co . KG for an A380-related Airbus Deutschland 
GmbH facility in Hamburg Finkenwerder; 
30. Subsequent share transactions and cash extractions involving subsidy recipients; 
31. Termination of the A300 LCA programme; 
32. Termination of the A310 LCA programme; 
33. Termination of the A340 LCA programme; 
34. Completed deliveries of relevant LCA to ma rkets for which displacement was found and 
completed performance of sales contracts for A319s with easyJet, A320s with Air Berlin, A319s and 
A320s with Czech Airlines, A320s with Air Asia, A340-600s with Iberia, A340-300s and A340-600s 
with South African Airways, A340-500s and A340-600s  with Thai Airways International, A380s with 
Emirates Airlines, A380s with Singapo re Airlines, and A380s with Qantas; 
35. Non-subsidised subsequent investments in Airbus' A320 and A330 LCA programmes;
2  
36. Attenuation, through the actions or steps take n with respect to the subsidies and through 
further intervening causes, of any causal link to th e point that it no longer constitutes "'a genuine and 
substantial relationship of cause and effect' be tween the subsidies and the alleged market 
phenomenon".3 
 
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1 Appellate Body Report, EC – Aircraft , para. 709. 
2 Appellate Body Report, EC – Aircraft , para. 1233. 
3 Appellate Body Report, EC – Aircraft , paras. 1232-1233.