In the dispute to illegal Boeing subsidies the United States in the last instance, before the world trade organization (WTO). The US government have not taken all of 2011 and 2012, as illegal Internet privileges for U.S. aircraft manufacturers such as claimed, ruled the WTO appellate body. According to the decision, the subsidies must be stopped now, but not by Boeing will be paid back.
The ruling clears the way for retaliation on the part of the European Union, which had initiated the case 15 years ago. This could go according to the assessment of Airbus to billions. At the same time billions of claims of Americans against the WTO, but pending, which in turn with a lawsuit against the EU because of illegal Airbus subsidies in 2018 success. In the Airbus case, the negotiations on the retaliation. The height of a WTO-Arbitrator.
In the Boeing case, it is against WTO rules, in violation of tax and other incentives in the U.S. state of Washington. There, Boeing has benefited from the reduction of the corporate tax. As a result, the company had been in competition for jobs with Airbus in 2013 and 2014, in Dubai, Canada and Iceland a head start and was able to add the European rivals damage. The body of the EU, however, unlike in 2017, under other laws of that state support for research and development accelerated with the completion of the Dreamliner Boeing 787.
EU judgment evaluates as a success
Boeing wants to make the judgment on appeal. The US group was committed from the beginning of the procedure, the arrangements of the WTO to implement, it was also this time is no different, the company said. The US government pointed out, however, that the WTO rejected most of the allegations of the EU against Boeing. Only the benefits in the state of Washington have not been questioned by the WTO.
The EU and the European competitor, Airbus evaluated the judgment as a success. “Today’s decision by the EU is to be welcomed, but also for their aircraft industry, and the employees,” said EU trade Commissioner Cecilia Malmström. The WTO appellate body have now definitively confirmed that the US had subsidised Boeing, contrary to the rules and decisions of the WTO.
For Boeing is the judgment after the two plane crashes of machines of the model 737 Max 8 yet another setback. Indonesia’s national airline Garuda will therefore already have an order over 49 machines of the type Boeing 737 Max undo.
