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.

Both the European Union and the U.S. appealed the initial ruling. Appellate judges in Geneva reversed an earlier finding that only two of 23 Department of Defense programs gave illegal aid, saying today that subsidies from all 23 programs violated global trade rules. They also reversed an earlier ruling that tax breaks from Kansas didn't cause adverse effects.

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