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Dispute settlement | Geneva, 19 December 2014

EU requests WTO consultations on extension of State of Washington subsidies to Boeing 777x

The Commission today requested formal consultations with the United States in the World Trade Organisation (WTO). These consultations concern Washington State legislation granting subsidies to Boeing and other aerospace firms from 2024 to the end of 2040.

Washington State tax subsidies, originally available until 2024, have already been declared WTO inconsistent in 2012 in the context of the on-going WTO case concerning subsidies to Boeing (DS 353). The Commission's request for consultations regarding Washington State's decision to continue to subsidise the US aerospace industry despite a WTO ruling finding the subsidy WTO inconsistent is thus a consistent and necessary step in this dispute.

The amount of the extended Washington State subsidies is estimated at USD 8.7 billion. It will be the largest subsidy for the civil aerospace industry in US history.

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