Confirming what had been widely reported back in January, the WTO officially ruled today that Boeing received at least $5.3 billion in illegal subsidies including research and development payments from NASA Reuters reports.
Today’s report follows a similar finding by the WTO last year that Airbus also received significant illegal subsidies from the European Union.
Both Airbus and Boeing claimed victory just after the report was released with Airbus saying that the finding proves that Boeing has an unfair advantage which has led to $45 billion in lost revenue for the European aerospace company and Boeing claiming that the $5.3 billion is dwarfed by the nearly $20 billion that the WTO ruled last year that Airbus received.
“This WTO ruling shatters the convenient myth that European governments must illegally subsidize Airbus to counter U.S. government assistance to Boeing,” said Michael Luttig, executive vice-president and general counsel at Boeing.
Reflecting the murky nature of the dispute between the two sides, both the EU and the U.S. suggested that they were likely going to appeal portions of today’s ruling.