EU/USA - WTO Rules Against Boeing

Arno Froese

The US failed to end Boeing subsidies even after the WTO ruled such measures illegal, according to the trade body. The EU declared “final victory” in the massive trade spat, but the bloc also faces issues over Airbus.

US aerospace giant Boeing has received unfair tax breaks in the US state of Washington, an appellate panel in the World Trade Organization (WTO) ruled.

The tax break of some $100 million (€89 million) annually harmed the sales of Boeing’s European rival Airbus, according to the WTO officials.

The decision, which is not subject to appeal, opens the way for the EU to claim billions in damages. The damages are estimated based on the negative impact of the subsidies and not the subsidy itself.

EU trade officials described the ruling as a “final victory” in the 15-year-long dispute.

A 2018 ruling by the WTO already found that the EU was also failing to stop its own illegal subsidies for Europe’s Airbus. Washington has since claimed an unspecified amount in damages and a WTO mediator is still examining this claim.

The EU and the US have traded accusations on illegally subsidizing their respective aircraft manufacturers since 2004. The alleged subsidies vary from tax breaks and government research and development funding, to state issued loans, as both sides seek to give their companies a leg up in the global rivalry.

In 2011, the WTO found that Boeing received $5.3 billion in illegal subsidies between 1989 and 2006. The verdict was confirmed in 2012. In late 2016, the WTO found some US subsides have continued despite the global body declaring them illegal, and the verdict confirmed this decision., 28 March 2019

Arno's commentary

For over 15 years, these two giants have accused each other of receiving unfair subsidies. Logically, both sides have valid reasons and proof, but to implement that the guilty party is to pay damages is most unlikely. The acclaimed “final victory” is only final at this time. The battle will continue until a truly effective world government is established, with authority and power to implement international law. These present legal skirmishes are part of the process that will lead to unity.

We again point to the super success of the coming Antichrist, of which Revelation 13:3b states: “…and all the world wondered after the beast.”

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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