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Boeing wins latest round in tax fight with Airbus

06 September 2017

The WTO originally found both Boeing and Airbus to have been illegally subsidized, and neither the US nor European Union have - with a series of claim and counterclaims - been able to convince the World Trade Organization otherwise.

"The WTO has rejected yet another of the baseless claims the European Union has made", Boeing announced in a statement.

However, according to Boeing, the tax breaks amounted to no more than $1 billion.

He said previous rulings in the same case had rejected all other claims of prohibited subsidies regarding the 777X incentives and on Monday the appeals court threw out the one remaining claim, which was that the state's aerospace B&O tax-rate reduction was prohibited.

The decision, yesterday, by the World Trade Organization's appellate body upturns a ruling by a lower WTO panel in November that said that Washington state, which is home to much of Boeing's plane manufacturing operations had provided prohibited subsidies through a tax incentive for production of the Boeing 777X.

Boeing 777X
Boeing wins latest round in tax fight with Airbus

The E.U. and the United States have been sparring in court over alleged illegal subsidies for the two companies for years.

Game, set but not quite match to Boeing in this bitter 13-year battle.

According to Boeing's press announcement, the WTO's ruling ends one of two WTO cases that the European Union has brought against the United States.

Last September, a WTO panel found that Brussels had not respected a 2011 ruling ordering it to take steps to withdraw several support and subsidy programs for Airbus. For more than a decade, however, the two giants have been fighting over how much help the other is getting and in what form. Airbus claims it has lost sales valued at $100 billion as a result of the subsidies to Boeing.

However, Airbus said ‎it would continue the fight as other complaints over alleged U.S. aid to Boeing are yet to be resolved. Their newest competitor is also their biggest prospective customer.

Boeing wins latest round in tax fight with Airbus