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WTO says U.S. failed to halt state tax subsidy for Boeing
Source: Reuters
BUSINESS NEWS MARCH 28, 2019 / 12:19 PM / UPDATED 5 HOURS AGO
WTO says U.S. failed to halt state tax subsidy for Boeing
Tom Miles, Tim Hepher
4 MIN READ
GENEVA/PARIS (Reuters) - The World Trade Organization said on Thursday the United States had ignored its request to halt a subsidized tax break for Boeing Co in its main plane-making state of Washington as a 15-year-old transatlantic trade row edges towards tit-for-tat sanctions.
The European Union said the WTO appeal ruling had vindicated its claims that Boeing continued to receive illegal subsidies, but the United States said only one measure, a Washington state tax break worth around $100 million annually, had been found still to violate the rules.
The trade powers have been battling since 2004 over mutual claims of illegal aid to plane giants Boeing and Airbus, with parallel cases generating thousands of pages of findings and dense litigation that put a burden on the already congested WTO.
Both sides have been caught paying billions of dollars of subsidies to gain advantage in the global jet business, and asked to stop or face potential sanctions. Thursday’s appeal ruling showed that the United States did not stop all subsidies when asked to do so, echoing an earlier finding against the EU.
-snip-
WTO says U.S. failed to halt state tax subsidy for Boeing
Tom Miles, Tim Hepher
4 MIN READ
GENEVA/PARIS (Reuters) - The World Trade Organization said on Thursday the United States had ignored its request to halt a subsidized tax break for Boeing Co in its main plane-making state of Washington as a 15-year-old transatlantic trade row edges towards tit-for-tat sanctions.
The European Union said the WTO appeal ruling had vindicated its claims that Boeing continued to receive illegal subsidies, but the United States said only one measure, a Washington state tax break worth around $100 million annually, had been found still to violate the rules.
The trade powers have been battling since 2004 over mutual claims of illegal aid to plane giants Boeing and Airbus, with parallel cases generating thousands of pages of findings and dense litigation that put a burden on the already congested WTO.
Both sides have been caught paying billions of dollars of subsidies to gain advantage in the global jet business, and asked to stop or face potential sanctions. Thursday’s appeal ruling showed that the United States did not stop all subsidies when asked to do so, echoing an earlier finding against the EU.
-snip-
Read more: https://www.reuters.com/article/us-eu-usa-aircraft-wto/wto-says-u-s-failed-to-halt-state-tax-subsidy-for-boeing-idUSKCN1R923B