WTO Reverses Ruling against Washington State Tax Incentive

The World Trade Organization (WTO) has issued an Appellate Body report rejecting the case brought by the European Union (EU) alleging that the United States provided so-called “prohibited” subsidies to Boeing.  The EU challenged seven Washington State tax measures, alleging that they were contingent on Boeing’s use of domestic fuselages and wings instead of imported fuselages and wings.  The Appellate Body disagreed, giving the United States a complete victory in this dispute. This finding comes on the heels of a WTO compliance panel finding in June in a separate dispute that 28 of 29 U.S. programs challenged by the EU