As anticipated, the World Trade Organization (WTO) yesterday formally launched an investigation into allegations of illegal state aid for Airbus and Boeing, setting the scene for what some analysts say could be one of the

biggest trade battles in history.
The WTO has appointed panels to investigate allegations by both Brussels and Washington pertaining to billions of dollars of subsidies which are said to have been paid by governments to both of the world's largest civil aircraft manufacturers. The key concern surrounding the investigation is that transatlantic relations could become very strained if the row spirals out of control. If either party is found guilty, then the other could win the right to impose sanctions that far outstrip any seen in the past.