WTO set to sanction Boeing over tax breaks -reports

Nov 27 The World Trade Organization is
set to rule this week that Boeing Co received illegal tax
breaks from Washington state, according to reports in The
Telegraph and The Wall Street Journal.

The Journal said the trade organization will argue that the
Washington state tax break is a prohibited subsidy and will have
to be withdrawn, citing people familiar with the matter.

The paper said the WTO is not likely to say what the value
of the prohibited tax break is, but the European Union has
argued that Boeing has received more than $8 billion in
forbidden subsidies.

The tax breaks in question are for Boeing’s 777X airplane.

The ruling is part of a series of tit-for-tat transatlantic
complaints about aircraft subsidies that together make up the
world’s largest trade dispute, still raging after 12 years of
bitter arguments over support for Boeing and rival Airbus.

Representatives for Boeing and the WTO could not immediately
be reached for comment.

(Reporting by Michael Erman; Editing by Peter Cooney)

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