Trade Organization appellate panel has reversed the WTO's 2016 finding
that a tax incentive provided by the state of Washington to Boeing for
development of the 777x widebody aircraft is a "prohibited" subsidy.
decision is a victory for the U.S. and Boeing in their ongoing dispute over
aircraft development subsidies with the European Union and Airbus.
appellate panel determined that the business and occupation tax incentive
passed by Washington state in 2013 isn’t a prohibited subsidy because it doesn't
block Boeing from using imported goods in the aircraft.
general counsel Michael Luttig called the ruling, "a sweeping and clean win for
the United States," in a prepared remark Monday and added that the EU has no
option for appeal.
came as part of a 2014 case filed by the EU against the U.S. Last November, the
WTO concluded that six other tax incentives dispute by the EU are not
latest of the false claims Airbus and its government sponsors have made has now
been rejected by the WTO,” Luttig said.
In its own statement,
Airbus noted that as part of a separate case in 2012 the WTO found that
subsidies received by Boeing are "actionable."
"This issue is not over," a
company spokesman said in an email.
is part of a broader and long-running dispute between the EU and the U.S. over
subsidies to Airbus and Boeing. In September 2016 the WTO found that Airbus had utilized more than $4 billion in launch aid
to develop its A350XWB aircraft.