WTO: U.S. Aid to Boeing Illegal

Appeals body upholds ruling that federal, state aid to Boeing damaged rival Airbus.

Boeing Co. subsidies from the U.S. and individual states damaged rival Airbus SAS by more than $5.3 billion, World Trade Organization judges said as they upheld an earlier ruling.

The WTO’s Appellate Body today backed a March 2011 report finding the U.S. provided aid to Chicago-based Boeing through federal research grants and state support in developing aircraft including the 787 Dreamliner. Airbus parent European Aeronautic, Defence & Space Co. has said the aid to Boeing cost it $45 billion in lost sales from 2002 to 2006.

Unconditional Talks

The 27-nation bloc says a solution to the trade dispute, the world’s most costly, must only come through negotiations. “I have always been saying we are ready to start unconditional discussions,” De Gucht said. “That remains so.”

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