Boeing: 5.7 billion dollars subsidies violate the World Trade Organization rules

According to the World Trade Organisation (WTO), United States decision to extend tax breaks for the production of the Boeing 777X until 2040 violates international trade rules. The United States, in fact, making the mentioned tax breaks depending on the use of domestically produced wings, discriminated against foreign suppliers and configures an anticompetitive behaviour.

Cecilia Malmström, EU Trade Commissioner, affirmed that the WTO rules currently in force are an important victory for the EU, as well as its aircraft industry, and that the panel published by WTO on November 28 “has found that the additional massive subsidies of USD 5.7 billion provided by Washington State to Boeing are strictly illegal. We expect the US to respect the rules, uphold fair competition, and withdraw these subsidies without any delay.”

This is the first time that the WTO panel finds out that, in the Airbus/Boeing litigation, one of the disputing parties has granted such outright prohibited subsidies that discriminate against foreign producers.


Pietro Michea