Boeing flying high after WTO reverses ruling in subsidies dispute

Geneva - Subsidies given by the U.S. state of Washington to Boeing are legal, a World Trade Organization (WTO) appeals body said Monday, partially overturning a victory by rival Airbus and the European Union previous year. The appellate body isn't making a recommendation in the dispute, it said Monday in a statement.

"Airbus has a long history of putting European taxpayer money at risk through the unsecured loans that created and continue to sustain the company", he said.

The original ruling from the WTO proclaimed that Boeing received tax breaks for manufacturing purposes at its Washington state facility. But, today, the earlier verdict was overturned.

Boeing still seeks and gets government incentives to locate work, most notably the 777X incentive package from Washington state, the biggest corporate tax break any state has ever granted. In the Airbus case (DS 316) the appeal proceedings are also underway, and the report by the Appellate Body on European Union compliance is expected early 2018.

The decision effectively ends one of three WTO cases arising from government support of Airbus or Boeing. That case is still in its compliance phase and has separately determined the subsidies to be "actionable", a lesser but still illegal transgression of WTO rules, Airbus said in a statement.


Airbus, which estimates it has lost $100bn in sales because of Boeing subsidies, said: "Boeing illegal subsidies are still illegal and need to be removed".

However, Airbus said ‎"the "game" is far from over" as other complaints over alleged aid are still to be resolved.

The appellate body is expected to rule later this year on a 2016 finding that the European Union failed to remedy some of the incentives to Airbus deemed illegal in 2011 and that the bloc compounded the issue with below-market loans for the planemaker's new A350 jetliner.

If the decision is upheld, the USA would be able to sue for compensation as a result. The EU has appealed and disputes USA claims of $22 billion in damages. Brussels and Washington have two larger cases pending at the WTO, centred on multiple claims and counter-claims about illegal subsidies for their respective aviation industries.

Related:

Comments

Latest news

Check Out: After Shah Rukh Khan, Priyanka Showers Dilip Kumar With Affection
Priyanka Chopra who has returned to the bay after a long time, last week, finally cleared her schedule to make sure she met Dilip. Priyanka also expressed her gratitude by replying to the post and wrote, "It was lovely seeing both of you".

It's happening! Mariah Carey's bringing her Christmas show to the UK
The global superstar will perform at London's O2 Arena and Manchester Arena as part of her All I Want For Christmas Is You Tour. Over the years, Mariah has released two Christmas albums, so we can expect plenty of festive fun at her shows.

Kenneth Juster to be United States ambassador to India
Acknowledging his contribution to the bilateral relations between the US and India, USIBC awarded him the Blackwill Award in 2004. President Donald Trump proposed his intent to nominate Kenneth Juster as the new ambassador of USA to India, yesterday.

Krispy Kreme offering pumpkin spice doughnuts September 8
But the season wouldn't be complete if doughnuts weren't given the pumpkin spice treatment, and Krispy Kreme knows this well. And with the onset of fall, many companies are offering limited-time pumpkin spice treats for the season.

RBI adds HDFC among banks 'too big to fail' with SBI, ICICI
Moreover, due to this perception of these banks as being TBTF, they enjoy certain advantages in the funding markets. Reserve bank of India ( RBI ) has added HDFC bank in the domestic- systematically important banks list.

Other news