PARIS (Reuters) - The World Trade Organization has ruled Boeing received over $20 billion in subsidies through research deals and tax breaks and called for them to be withdrawn, a European source familiar with the case said.
An interim report released to the parties on Wednesday backed European complaints over some $17 billion of research contracts from NASA and the Pentagon and approximately $4 billion of tax breaks from Washington state, the source said.
The WTO found the aid "actionable" and called for it to be withdrawn but stopped short of labeling the state incentives "prohibited," which would require faster remedies, the source said. It also apparently dismissed complaints over property tax and other measures in Kansas.
The source, who asked not to be identified because the findings remain confidential, estimated the EU had prevailed in claims totaling approximately $22-23 billion, compared with $24 billion worth of measures which it targeted in a counter-suit to a U.S. suit over aid to European planemaker Airbus.
There was no immediate confirmation of the findings in the United States, where sources involved in the case have warned any losses incurred over aid to BOEING (BA.NY)would be overshadowed by a previous U.S. victory over European support for Airbus.
(Reporting by Tim Hepher)
