WTO calls on EU to do exclusions, tax – News Telecast

MEXICO CITY, Mexico, nov. 28,2016.- The World Trade Organization (WTO) ruled that a tax exemption of Washington to help Boeing develop new aircraft 777X is a grant that is not permitted, in a setback for the aircraft manufacturer american.

The WTO said that the grant materialized in the form of a reduction in the main tax business for the aerospace sector of EU, which was agreed in 2013, when Boeing analyzed where to join the latest member of its fleet of long-haul aircraft.

it Also rejected a complaint of the European Union on six other tax measures.

this Is the third plan of public support to Boeing or its european rival Airbus, which receives rave reviews from the WTO in a dispute transatlantic trade that takes 12 years and involves mutual accusations of tens of billions of dollars in aid.

The opinion, which can be appealed by both parties, occurs in moments in which the united States is studying potential sanctions against the EU by previous judgments against Airbus.

According to the EU, their value amounting to 5,700 million dollars, a

total package of tax incentives that the state of Washington

there was encryption in 8,700 million.

Brussels appealed in 2014 to the WTO by the decision in 2013 of the state of Washington to modify and extend until 2040 a few tax advantages to Boeing in exchange for the giant aircraft american made production of the wing and the fuselage of the 777X, as well as the final assembly, in that state.

In total, the Union challenge before the WTO’s seven tax measures to the aerospace of that state, and the panel considered each of these grants.

The European Commission (EC) called it “a major victory for the EU and its airline industry” the decision, and the commissioner for Trade, Cecilia Malmström, said it now expect US to “respect the rules, abide by a fair competition and remove these subsidies without delay”.

community Sources indicated that Boeing will not have to repay the u.s. Government the 5,700 million dollars in prohibited subsidies, but that will not be able to benefit from these tax exemptions as he had planned. Already in 2012, the WTO had declared incompatible with the rules of the organization the regime grants original, which should expire in 2024.

Airbus is, in the eyes of Europe, the great damaged by the illegal subsidies granted to its us rival.

The grants sanctioned will have course to Airbus to a loss of 50,000 million dollars in sales, and next to the illegal state aid granted to the 787, the economic damage amounts to at least 95,000 million dollars, according to the manufacturer.

in Front of the joy shown by the EC and Airbus, the rival to Boeing stressed that the WTO has ruled against “virtually all of the demands” raised by the EU, and hoped that the manufacture of the 777X can be maintained after the appeals process, thus suggesting that the united States will make use of its right to appeal.

Both Brussels and the u.s. Government now have 60 days to decide his appeal against the findings of the Special Group, which leaves in the hands of the next president of the united states, Donald Trump, the determination of how to proceed on the part of Washington.

LLC