The World Trade Organisation has found that the European Union has failed to honour multiple previous rulings and has provided more than $22 billion of illegal subsidies to European aircraft maker Airbus.
Boeing has rejected a World Trade Organisation claim that it received illegal subsidies for its 777X manufacture programme. In response to the ruling, Boeing argued the WTO had rejected virtually all of the European Union’s challenges to the Washington state tax incentives. On Monday the World Trade Organisation ruled a tax break from Washington state to help Boeing develop its new 777X jetliner was a prohibited subsidy.
A World Trade Organisation compliance panel has ruled that the European Union has failed to comply with its obligation to remedy the subsidies European governments have provided to support Airbus. Rather than comply with their WTO obligations to remedy the $17 billion in past subsidies provided to Airbus, the WTO found that EU Member States provided Airbus with new illegal launch aid - reportedly almost $5 billion - so the organisation could launch the new A350.
The World Trade Organization is expected to rule today that huge subsidies paid to Boeing since the early 1990s are illegal. About $24bn of aid was masked as defence research, the EU claims, and comes a year after the WTO issued a similar ruling condemning Brussels for providing subsidies to Airbus.
The World Trade Organisation has ruled subsidies from European governments to airplane manufacturer Airbus are illegal. The decision – the latest twist in a six year courtroom saga – was made public earlier and declares European launch aid subsidies used by Airbus to develop its commercial airplanes must end.
The World Trade Organisation has reached a final conclusion on a dispute over aircraft subsidy between the United States and the European Union, with both Boeing and Airbus claiming victory. However, the transatlantic dispute looks set to continue as both sides study the judgement.