WTO rules some US state support for Boeing illegal

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The World Trade Organization on Thursday partly upheld an EU complaint against US state support for Boeing, saying that some aid paid to the aircraft maker amounted to illegal subsidies.

In a 900-page report, the WTO found that on one key issue "the effects of the NASA and DOD (Department of Defense) aeronautics R&D (research and development) subsidies are significant price suppression, significant lost sales and threat of displacement and impedance of exports from third country markets" in the product category of 200-300 seat wide-body aircraft.

The amount of subsidies paid through NASA were worth $2.6 billion over 1989-2006, said the WTO, which added that those paid through the Department of Defense research and development programme were "unclear."

© 2011 AFP

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