Boeing (NYSE: BA) has commended the Office of the US Trade Representative (USTR) for achieving another significant win in the long-running dispute between the United States and the European Union (EU) over aerospace subsidies, the company said.
The World Trade Organization (WTO) confirmed that the United States has complied with virtually all of the WTO´s decision in the counter-case the EU filed against the United States in 2006. The EU and Airbus claimed in this case that Boeing benefitted from tens of billions of dollars of subsidies and focused their arguments on research and development contracts that Boeing received from the National Aeronautics and Space Administration and the Department of Defense.
In addition to holding that the US had complied with its prior ruling concerning various US government research and development contracts with Boeing, the WTO today also dismissed EU claims against the investment incentives Boeing received in South Carolina, other older state and local tax incentives, the FAA CLEEN program, and seven of eight tax incentives from Washington State.
Under WTO rules, tariffs for non-compliance are levied based upon the harm the subsidies are causing annually, which USTR in this case estimates is in the USD 7-10 billion range.