WTO rules Boeing subsidies merit EU tariffs

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The World Trade Organization This week ruled U.S. subsidies to Boeing merit tariffs from the European Union. The European Union already has a list of expected tariffs, including various fish and aquaculture, onions, potatoes, and various forms of different fruits, vegetables and tree nuts.

U.S. Trade Representative Robert Lighthizer criticized the ruling. Lighthizer stated, “While we disagree with certain aspects of its valuation, the more important point is that the arbitrator did not authorize any retaliation for subsidies other than the Washington State tax break.”

In April 2020, Washington State fully repealed the tax rate reduction, the only provision found in the WTO compliance proceeding to be an inconsistent subsidy that harmed the EU. The issue dates back more than a decade.

After many years of seeking unsuccessfully to convince the EU and four of its member States to cease their subsidization of Airbus, in 2004, the United States brought a WTO challenge to EU subsidies. The EU responded by challenging subsidies to Boeing by the United States.