US aerospace giant Boeing has received unfair tax breaks in the US state of Washington, an appellate panel in the World Trade Organization (WTO) ruled on Thursday.
The tax break of some $100 million (€89 million) annually harmed the sales of Boeing's European rival Airbus, according to the WTO officials.
The decision, which is not subject to appeal, opens the way for the EU to claim billions in damages. The damages are estimated based on the negative impact of the subsidies and not the subsidy itself.
EU trade officials described the ruling as a “final victory” in the 15-year-long dispute. Click here to read more.
- Appellate Body Issues Report on U.S. Compliance in the Boeing Dispute (WTO)
- Boeing Received Unfair U.S. Tax Breaks, Hurting Airbus: WTO Panel (Bloomberg)
- WTO Rules U.S. Has Failed to Eliminate Illegal Aid for Boeing (Wall Street Journal)
- WTO Says U.S. Failed to Halt State Tax Subsidy for Boeing (Reuters)