Directorate-General for Trade

Civil aviation

For export credit interest rates on civil aircraft, see Minimum interest rates

• EU civil aviation exports in 2007: €38 billion

As well as the large civil aircraft built by companies like Boeing and Airbus, the civil aircraft sector includes medium, and small civil aircraft, helicopters and aero-engines, as well as parts and components. The civil aircraft sector is concentrated mainly in the United States and in Europe.

In 2007 Europe was the second biggest global producer after the US of civil aircraft. European exports of civil aviation technology totalled €38 billion in 2007. The sector in Europe is dominated by the production of large civil aircraft – aircraft designed to carry more than 100 passengers.

By far the most important barriers faced by EU producers of civil aircraft are the substantial subsidies paid to by the US government to their competitor Boeing in the United States. The EU believes that the US Federal Government and US states have provided Boeing with more than $15billion in WTO-illegal direct subsidies or indirect subsidies through NASA and the US Department of Defence. The EU is currently testing the legality of these payments in the WTO. In 2006, the WTO ruled that Boeing was the beneficiary of illegal tax breaks from the US government through the Foreign Sales Corporation tax rebate system.

• Find out more about the European aerospace industry on EU Enterprise and Industry.

Regulation concerning subsidisation and unfair pricing of airline services

For more information on action against subsidised products, see Anti-subsidy

EU rules include a regulation to counter the effect of subsidies and unfair pricing for air services from non-EU countries.

When these practices are determined to have caused injury to EU air carriers, measures can be imposed, if they are in the Community interest.

Regulation (EC) N° 868/2004 concerning protection against subsidisation and unfair pricing causing injury to the Community air carriers in the supply of air services from countries not members of the European Community.