The EU appeals against the panel report in large civil aircraft dispute. The report issued on 30 June 2010 and need to be corrected or clarified. The report issued on 30 June 2010 and sides with the EU in rejecting a significant number of US claims.

The EU has lodged its appeal with the WTO Appellate Body on the panel report concerning Airbus support (DS316)and the panel including that:

• Certain instances of repayable launch investment (RLI) for the A380 are export subsidies.
• A causal link between Airbus support and any adverse effects to Boeing has been established.
• Certain infrastructure measures taken by EU Member States for which Airbus pays market-based rent constitute subsidies.

From 1992 onwards, the EU and the US were bound by a bilateral agreement which regulated government support for large civil aircraft.

The US unilaterally dropped this agreement in October 2004 and started WTO litigation. The WTO panel began its work in 2006 and the publication of its final panel report on the 'Airbus' case on 30th June 2010 marked the end of the first phase of litigation.  With the EU's notice of appeal, the second phase of the litigation will commence in this case.

This dispute is unprecedented in both its factual and legal complexity. It also covers a number of issues not yet settled in WTO case-law. A damaging precedent could arise if certain of the Panel's legal interpretations are allowed to stand, resulting not only in a disservice to the entire WTO membership but also putting an unwarranted burden on Airbus and the Member States concerned.

The European Commission and the US Federal Aviation Administration (FAA) had officially concluded negotiations for the establishment of a Memorandum of cooperation in civil aviation research and development, in a meeting this year hosted by the EU Spanish Presidency. The Memorandum will develop objective based on the use of air transport systems more efficient and greener.