NEW YORK—The World Trade Organization (WTO) said Thursday that American aerospace firm Boeing Co. received billions of dollars in subsidies from the U.S. government.
The conclusion, decided by a panel at the WTO, is the latest twist in the long battle between stalwarts in aerospace, Boeing, and its European rival Airbus. For over five years, the two firms jostled for position, accusing each other of receiving illegal subsidies from their governments.
The WTO ruled this week that Boeing received more than $5.3 billion in subsidies from the federal government and NASA to work on research and development of its upcoming 787 Dreamliner commercial jet aircraft and other projects.
The EU and Airbus, in their initial application, claimed that Boeing had received more than $19 billion in total subsidies since 1989, but the WTO rejected most of the EU’s claims. As a result, both sides have claimed that the ruling is in favor of their respective manufacturers.
“These subsidies have resulted in substantial harm to EU interests, causing Airbus to lose sales, depress its aircraft prices, and unfairly lose market share to Boeing,” said Karel De Gucht, the trade commissioner of the European Union, in a statement. “The detrimental costs to EU industry from this lengthy and onerous subsidization run into billions of euro.”
The conclusion, decided by a panel at the WTO, is the latest twist in the long battle between stalwarts in aerospace, Boeing, and its European rival Airbus. For over five years, the two firms jostled for position, accusing each other of receiving illegal subsidies from their governments.
The WTO ruled this week that Boeing received more than $5.3 billion in subsidies from the federal government and NASA to work on research and development of its upcoming 787 Dreamliner commercial jet aircraft and other projects.
The EU and Airbus, in their initial application, claimed that Boeing had received more than $19 billion in total subsidies since 1989, but the WTO rejected most of the EU’s claims. As a result, both sides have claimed that the ruling is in favor of their respective manufacturers.
“These subsidies have resulted in substantial harm to EU interests, causing Airbus to lose sales, depress its aircraft prices, and unfairly lose market share to Boeing,” said Karel De Gucht, the trade commissioner of the European Union, in a statement. “The detrimental costs to EU industry from this lengthy and onerous subsidization run into billions of euro.”
