IV - ARGUMENTS OF THE PARTIES

Summary

4.1 The arguments of the parties are set out in their written and oral submissions to the Panel, in their answers to questions and in additional comments submitted pursuant to the Panel's request. The parties' arguments, as summarized by them are presented in this section. The full non-confidential text of certain of the European Communities' submissions can be downloaded from the European Communities' web site. The full non-confidential text of certain of the United States' submissions can be downloaded from the U.S. Government's web site.

Preliminary Issues

1. Arguments of the European Communities

4.2 In its panel request, the European Communities explained that it had initiated DS353 proceeding due, in part, to the U.S. non-cooperation in the Annex V process that had been initiated under DS317 proceeding, i.e. the European Communities' initial challenge of prohibited and actionable subsidies provided to U.S. producers of large civil aircraft. Specifically, the European Communities stated that it was regrettable that the United States decided to use unfounded procedural objections to undermine the Annex V process initiated in DS317. The European Communities asserted that the United States had decided not to provide answers on measures that the United States unilaterally determined to be outside the scope of that dispute, and had repeatedly blocked European Communities' endeavours to have the Panel rule authoritatively on the scope of the dispute.