USTR Says US No Longer Breaking WTO Rules for Boeing

The United States notified the World Trade Organization that it has fully complied with the WTO's findings in the Boeing subsidies dispute, the Office of the U.S. Trade Representative said May 6. The European Union and U.S. have been battling for 15 years over whose subsidies to their aircraft manufacturers distort trade. The WTO has said that both sides were in the wrong, and the U.S. currently has Section 301 tariffs on about $7.5 billion worth of European aircraft, food, apparel, linens, tools, wine and spirits in a WTO-sanctioned retaliation for past Airbus subsidies.

USTR said that a WTO panel said in April 2019 that Washington state tax breaks for Boeing were illegal, and that those tax breaks were eliminated in March this year. “With Washington State’s repeal of this relatively minor tax reduction, the United States has fully implemented the WTO’s recommendation, ending this dispute,” USTR Robert Lighthizer said. The EU is still seeking to retaliate against the U.S. for Boeing subsidies, and is waiting for a compliance panel decision.