WTO rules against Boeing’s 777X tax break

Wing autoclave

A giant autoclave is ready to “cook” parts for the Boeing 777X wings. (Credit: Boeing)

In the latest chapter of a years-long legal battle, the World Trade Organization says Washington state’s tax break for production of the Boeing 777X jetliner runs counter to international trade rules.

“We expect the U.S. to respect the rules, uphold fair competition, and withdraw these subsidies without any delay,” Cecilia Malmström, the European Union’s trade commissioner, said in a statement issued after today’s ruling.

However, U.S. officials and Boeing executives signaled that the battle would continue. The fight over the tax breaks is part of a larger dispute between the Boeing Co. and its European rival, Airbus, with U.S. and EU officials in the middle.

Boeing’s general counsel, J. Michael Luttig, went so far as to claim in a statement that today’s ruling was “a complete victory for the United States, Washington state and Boeing.”

The way Luttig saw it, the WTO rejected “virtually every claim made by the EU in this case” and found that Boeing “has not received a penny of impermissible subsidies.”

Get the full story on GeekWire.

About Alan Boyle

Award-winning science writer, creator of Cosmic Log, author of "The Case for Pluto: How a Little Planet Made a Big Difference," president of the Council for the Advancement of Science Writing. Check out "About Alan Boyle" for more fun facts.
This entry was posted in GeekWire and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.