WTO Rules Boeing Received Illegal Tax Subsidy

CHICAGO (dpa-AFX) – Aerospace giant Boeing Co. were granted an illegal tax benefit by the Washington state to assemble and manufacture the 777X there itself, the World Trade Organization said.

The WTO made the order after investigating a complaint from the European Union that was filed in December 2014 against the U.S. over the dispute of subsidies to aircraft makers.

The WTO has asked the U.S. to withdraw the subsidy within 90 days, while the U.S. can appeal the ruling.

‘The Panel has found that the European Union has demonstrated that the B&O aerospace tax rate for the manufacturing or sale of commercial airplanes under the 777X program… is a subsidy contingent upon the use of domestic over imported goods is prohibited,’ said the WTO in its ruling.

Copyright RTT News/dpa-AFX

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