A preliminary finding from the World Trade Organization (WTO) is due any minute on the illegal subsidies case filed by the U.S. Trade Representative in the world body several years ago.  The WTO is expected to rule in favor of the U.S. in this case.    In 2004, the U.S. government brought the largest ever trade case to the WTO, claiming that subsidies provided to the European airline manufacturer Airbus by several EU governments broke existing trade agreements.   The case alleges that the direct subsidies and low interest “loans” to Airbus and its parent company, EADS, constituted billions of dollars worth of illegal and unfair competition and contributed significantly to Airbus’ winning a Defense Department contract for the Air Force’s much needed new airborne refueling tankers over an American aircraft manufacturer.  More than just two global manufacturers fighting it out, this is a test case of the U.S. position on illegal government subsidies and its willingness to take WTO sanctions into account when doing government business.   As always, lurking in the background of this decision is China.  The Chinese government reorganized and consolidated its aircraft manufacturing industry in 2007, and is already cranking out military aircraft and commercial planes built to meet the burgeoning demand of air travel inside China.    Several EU countries have unabashedly admitted that they subsidize Airbus and don’t really care what the WTO says about it.   The U.K., France, and Germany have said that they will be subsidizing Airbus’ new A350 to the tune of about $4 billion.   U.S. aircraft industry employment has stayed somewhat stable compared to other industries, but has still suffered layoffs in both the commercial and military aviation industries.   Many of the five million jobs that manufacturing has already lost since 2000 are directly attributable to overseas governments subsidizing their “private” industries.  Unless it stops, more U.S. jobs will disappear.      And we have lost the ability to source a number of military products necessary to our national defense because those industries have gone to China as a result of the enormous – and illegal under current trade law – subsidies provided to China’s manufacturers.  Losing more domestic defense capacity because of economic cheating is something the U.S. must avoid.   Much like the “tires case” sitting on President Obama’s desk awaiting his decision whether or not to accept tariffs against subsidized and substandard tires, the President also must decide whether or not to consider the WTOs decision when his administration goes forward to defense procurement.   Planes, shmanes – why do we care?  Because the Chinese, poised to insert themselves into global airplane manufacturing industry – with an unfair advantage based on enormous government subsidies – will be watching very carefully.  If the U.S. does not stand up for American jobs in this case, no doubt China will feel doubly emboldened to proceed with its unfair trade practices unfettered by law.