EU, US Spar Over Aircraft Subsidies at WTO Hearing

The global trade arbiter organised a public screening last week of dispute panel hearings between the EU and the US regarding whether tax incentives provided by Washington state to American aerospace giant Boeing are in violation of WTO rules. Brussels claims that Washington state unfairly subsidises Boeing, with that state aid conditional on local content requirements which are prohibited by the WTO rules. This support is estimated to be worth nearly US$9 billion, making it the largest-ever subsidy for the civil aerospace industry. The EU filed its request for consultations ( DS487 ) – the first stage in WTO dispute settlement proceedings – in December 2014. A panel was then established in February 2015. The public screening last week featured two substantive meetings between the panel and the parties that were held this past February and April. During these meetings, representatives from both sides presented their arguments and counterarguments, answered the panel’s questions on legal and factual issues, and joined in some sessions by members participating as third parties. Previous disputes The two big international trade players have already sparred publicly at the WTO over domestic government support for the aerospace industry. In late 2004, the US challenged the EU’s...