777X tax breaks could end up in a WTO court

European Union officials are considering challenging tax breaks passed by Washington last November to encourage the Boeing Co. to assemble the new 777X jetliner here, Reuters reports.

The challenge would be the latest in a decade-old trade dispute between the EU and U.S. over aid for the aerospace industry. Each side accuses the other of illegally subsidizing its respective commercial airplane maker — in Europe’s case, Toulouse, France-based Airbus. The charges could, potentially, result in sanctions from the World Trade Organization.

The U.S. says European governments illegally lent Airbus money to cover some development costs related to the A350.

And EU officials say that Washington’s tax breaks effectively subsidize Boeing’s development costs for the 777X, Reuters reports.

In 2012, the WTO ruled against both Boeing and Airbus for getting illegal state support. The ruling against Boeing involved Washington’s tax breaks for the 787.

Olympia essentially extended the breaks last November. Even then, some were cautioning that doing so could simply invite another WTO ruling against Boeing.

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

More in Herald Business Journal

Snohomish inventor makes changing beds magical

Making your bed and lying in it just got a… Continue reading

Happy accident leads Edmonds couple to make Hunniwater drink

The latest line of energy drinks by Karin and Eric… Continue reading

Single payer is no panacea for our costly health care system

We must address the cost of health care before designing an insurance system.

Voters are on the sidelines as the port fills a vacant seat

Troy McClelland resigned from the Port of Everett commission too late for an election before 2019.

Career Fair planned next week at Tulalip Resort Casino

The Snohomish County Career Fair is planned from 10 a.m. to 2… Continue reading

American Farmland Trust president to speak in Mount Vernon

American Farmland Trust President John Piotti plans to give a talk about… Continue reading

In new setback, Uber to lose license to work in London

The company, beset by litany of scandals, was told it was not “fit and proper” to keep operating there.

Not home? Walmart wants to walk in and stock your fridge

The retailer is trying out the service with tech-savvy shoppers who have internet-connected locks.

Trade panel: Cheap imports hurt US solar industry

The ruling raises the possibility of tariffs that could double the price of solar panels.

Most Read