The US has been ordered to withdraw illegal state tax breaks for Boeing within three months, giving rival Airbus the latest victory in a 12-year battle over government support for the world’s two biggest aircraft makers.
The World Trade Organisation has found that a tax break granted by the state of Washington to Boeing in 2013 to ensure the US company produced its newest long-range jet there amounted to a prohibited subsidy.
This is only the fifth time in the WTO’s history that it has defined a subsidy as “prohibited”.
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