Reuters, GENEVA, SwitzerlandThe WTO on Monday ruled a tax break from Washington state to help Boeing Co develop its new 777X jetliner was a prohibited subsidy, in a setback for the US planemaker as it eyes victory in a parallel case against Airbus. The WTO did not give a value for the banned aid in its latest ruling, but the EU estimated it at US$5.7 billion out of an US$8.7 billion tax package in Washington, where most Boeing factories are based. The WTO backed EU claims that another six measures provided subsidies to Boeing, but rejected European arguments that these fell into the most toxic category being reviewed by its panel. Investors, too, seemed skeptical about the prospect of any near-term financial hit, sending Boeing shares down just 0.3 percent, in line with the market. “We expect little material impact on either Boeing or Airbus from WTO rulings,” Bernstein analysts said in a note.

Source: Taipei Times November 29, 2016 16:02 UTC