Boeing: WTO Ruling Could Lead To Biggest Retaliatory Tariffs Ever

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Mr. Enders of Airbus ratcheted up his rhetoric, accusing Boeing of relying on a "Washington state corporate welfare scheme" and insisting that the latest ruling was "only half the story - the other half coming out later this year will rule strongly on Boeing's subsidies and we'll see then where the balance lies". Boeing claims that the EU provided the European aerospace giant more than $22 billion in illegal subsidies.

This is expected to be the largest-ever WTO authorization of retaliatory tariffs.

It has been predicted that the tarrifa of Boeing could reach billions of dollars a year starting as early as 2019.

"This report confirms once and for all that the European Union has long ignored WTO rules, and even worse, European Union aircraft subsidies have cost American aerospace companies tens of billions of dollars in lost revenue", said U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerMcConnell urges GOP senators to call Trump about tariffs Companies brace for trade war MORE.

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But the WTO also dismissed USA claims that loans for the A320 and A330, the most popular Airbus models, were also costing Boeing significant sales, thus narrowing the scope of the ruling.

The worldwide court is expected to rule later this year on a separate case in which the European Union challenged billions of dollars in US tax incentives to Boeing.

On today's ruling, both manufacturers are claiming victory. "The commercial success of products and services should be driven by their merits and not by market-distorting actions", said Dennis Muilenburg, Boeing chairman, president and CEO.

To Airbus' point, one finding against the USA now remains before the WTO, which concerns a Washington state tax measure.

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"The result is simple: Airbus pays back its loans, Boeing pays back nothing and continues to exploit the generosity of the USA taxpayer", outgoing Airbus CEO Tom Ender said. Later this year, a separate WTO compliance panel is expected to deliver its decision on whether the USA complied with the terms of a 2012 ruling against illegal US tax subsidies that gave Boeing an unfair advantage.

However, the amounts will depend on arbitration, expected to take around a year. Boeing has in the past shown complete disregard by ignoring the recommendations and continuing with their illegal behavior.

The European Commission argued that the WTO decision rejected most US claims and was its victory.

"The Airbus case against Boeing is yet to come. It shatters Boeing's claim it perpetuated for years that their WTO case undermines European industrial-government partnership".

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