A World Trade Organization appellate panel has reversed the WTO’s 2016 finding that a tax incentive provided by the state of Washington to Boeing for development of the 777x widebody aircraft is a “prohibited” subsidy.
The decision is a victory for the U.S. and Boeing in their ongoing dispute over aircraft development subsidies with the European Union and Airbus.
The appellate panel determined that the business and occupation tax incentive passed by Washington state in 2013 isn’t a prohibited subsidy because it doesn’t block Boeing from using imported goods in the aircraft.
Boeing general counsel Michael Luttig called the ruling, “a sweeping and clean win for the United States,” in a prepared remark Monday and added that the EU has no option for appeal.
The ruling came as part of a 2014 case filed by the EU against the U.S. Last November, the WTO concluded that six other tax incentives dispute by the EU are not prohibited.
“The latest of the false claims Airbus and its government sponsors have made has now been rejected by the WTO,” Luttig said.
In its own statement, Airbus noted that as part of a separate case in 2012 the WTO found that subsidies received by Boeing are “actionable.”
“This issue is not over,” a company spokesman said in an email.
The case is part of a broader and long-running dispute between the EU and the U.S. over subsidies to Airbus and Boeing. In September 2016 the WTO found that Airbus had utilized more than $4 billion in launch aid to develop its A350XWB aircraft.