The Boeing Decision — Sub-National and Defense Measures Violate Global Trade Rules.

The WTO Appellate Body upheld some claims of the EU against the U.S. concerning subsidies to Boeing.
The USTR claimed this as a victory because of the smaller amount of subsidies found when compared to those found by the WTO in the U.S. case against the EU and its subsidies to Airbus.
To a great extent the USTR is correct. However,  the AB did find that state tax measures by Washington and some DOD and NASA research funding illegal as having adverse effects on Boeing.
This is interesting because this decision illustrates that sub-national units and defense measures can violate global trade rules. “Appellate Body Report of Boeing.” WTO News (March 12, 2012); “U.S. Victory in WTO Aircraft Dispute.” USTR News (March 12, 2012).

About Stuart Malawer

Distinguished Service Professor of Law & International Trade at George Mason University (Schar School of Public Policy).
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