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One of the recurring trade disputes between the United States and Europe concerns the rivalry between Airbus and Boeing in the market for wide-body aircraft. Airbus first began production of aircraft in the early 1970s with substantial financial assistance from European governments. As Airbus succeeded in making inroads into many of Boeing's markets, Boeing alleged that Airbus benefited from unfair subsidies and has pressured US trade authorities to counteract Europe's financial support. As a result, the United States and European Community signed an agreement on trade in civil aircraft in 1992 that limited government subsides for aircraft production. This agreement, however, has come under new strain as Airbus introduces the A-380 super-jumbo aircraft designed to compete directly against the Boeing 747.
This paper has taken an empirical look at international competition and trade disputes in the wide-body aircraft market. We began by estimating the demand for wide-body aircraft...

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Title: Boeing Vs. Airbus
Approximate word count: 320
Approximate pages: 2 (250 words per double-spaced page)

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