Aircraft industry: Trade war in the making between the US and the European Union
A trade war between the European Union and the United States of America is in the making - about Boeing.
A trade war between the European Union and the United States of America is in the making – about Boeing. The European Union is considering raising the pressure on the United States in the world’s largest trade dispute by challenging tax breaks that encouraged plane maker Boeing to keep production of its latest jet in Washington state, people familiar with the matter said on Friday.
The potential move would open a tense new phase in the decade-old formal trade dispute over aircraft industry aid, as Brussels and Washington argue about whether they have complied with rulings by the World Trade Organization, which in turn could set the tone for sanctions.
Both the EU and United States claimed victory when the WTO ruled between 2010 and 2012 against billions of dollars of support for Boeing and European rival Airbus, in a pair of cases spanning thousands of pages but lacking a final resolution.
But new aircraft developments by both companies have sparked fresh disputes over whether the two sides have obeyed those WTO rulings or simply continued aiding their industries as before.