Boeing may be slapped with WTO sanctions
The World Trade Organization as early as Monday is expected to rule that Boeing Co. has been granted illegal state subsidies for its newest long-range jetliner, according to people familiar with the finding.
The judgment involves tax incentives Boeing BA, +0.20% will receive from Washington state to build its new 777X widebody plane, the latest round in a long-running dispute between the U.S. and the European Union over support for Boeing and Airbus Group SE AIR, +0.45% .
Aircraft cases take years to resolve before the trade organization but are closely watched as evidence of the effectiveness of international rules. Donald Trump’s election victory and focus on trade are turning a new spotlight on such cases, and sanctions from earlier WTO judgments involving the two jet makers may start to be imposed next year.
The EU almost two years ago voiced concern at the WTO about the support package for the 777X, a revamped version of Boeing’s existing 777 long-range plane. The updated model has attracted more than 300 orders from carriers including Emirates Airline and Deutsche Lufthansa AG LHA, +0.60% .
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