On 4 September 2009 a WTO panel handed down an interim ruling in the long running dispute between the United States and the European Commission over so called “launch aid” in the form of soft loans to the European aircraft manufacturer Airbus.

While the ruling remains confidential, U.S. Senators from states where Boeing has a large presence have been briefed on the decision by the Office of the United States Trade Representative (USTR) and have commented publicly on the outcome.

The Associated Press news agency quoted Washington Senator Patty Murray, who initially urged the Bush administration to initiate the dispute, as saying that the ruling "confirms that Boeing has been competing on an uneven playing field for decades."

However, the Reuters news agency reports that the WTO has not in fact ruled that EU launch aid subsidies for Airbus are illegal, citing EU sources with knowledge of the WTO ruling.

The Financial Times newspaper quoted a European source as saying: “The draft report has dismissed 70 per cent of US claims about alleged EU subsidies to Airbus. It has also confirmed that repayable launch aid is a permissible way to partner with governments.”

The ruling is expected to remain confidential for months while both sides analyze the 1,000 page document.

A related EU counterclaim alleging illegal subsidies to Airbus-competitor Boeing in the form of research and development assistance is expected in 6 months to a year from now.

The dispute heated up in August when UK business secretary Lord Mandelson announced that the British government was to provide Airbus £340 million (US$556 million) in repayable launch aid to help the company develop its new A350 long-distance jet.

In response, the Office of the United States Trade Representative warned that "the commitment of launch aid, or any other form of preferential financing, by any of the EU member states would be a major step in the wrong direction."