All of the challenges over the Washington state tax incentives presented by the European Union have been rejected by the World Trade Organization (WTO).
"Today's decision is a complete victory for the United States, Washington State and Boeing," Boeing’s General Counsel J. Michael Luttig said. "The WTO found in September that Airbus has received $22 billion in illegal subsidies from the E.U. and that without these subsidies neither Airbus itself nor any of its airplanes would even exist today. By contrast, in rejecting virtually every claim made by the E.U. in this case, the WTO found today that Boeing has not received a penny of impermissible subsidies."
The E.U. presented challenges to state tax incentives in seven different states. The challenges for six of the seven states were rejected in full by the WTO and in the seventh state most of the challenges were rejected as well. The only tax rate that the WTO reduced in Washington, which was by a very narrow margin, was the Business and Occupancy tax rate for future 777X revenues.
All of the other challenges presented by the E.U. in regard to multiple incentive programs were rejected in full and by the WTO.
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