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WTO Rules Boeing Tax Breaks Illegal

30 November 2016

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Approved Changes

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United States-European Union- WTO

On 28 November 2016, the World Trade Organization ruled that tax breaks provided for Boeing for the development and production of the new 777X jetliner in the U.S. state of Washington are illegal state subsidies. The case was brought before the WTO by the European Union in 2014, and is part of a large trade dispute between the U.S. and the EU regarding Boeing and Airbus, which itself has also been ruled against by the WTO for illegal subsidies in the past. The case concerns a 2013 Washington state tax package that amended and extended various tax incentives for the...