GENEVA Nov 28 Boeing Co claimed the
upper hand on Monday after the World Trade Organization rejected
all but one complaints by the European Union against tax breaks
for its 777X jetliner, and predicted the WTO's ruling that the
remaining measure was a "prohibited subsidy" would be reversed
"In total, the EU claimed that Boeing had received $8.7
billion in subsidies. This claim was rejected by the WTO, which
found future incentives totalling no more than $50 million a
year to be impermissible," Boeing said in a statement.
"The WTO found that to date Boeing has received no benefit
from the 777X (tax) rate incentive, and will not until 2020,
because the first airplane will not be delivered until then."
Both sides have the right to appeal the ruling.
"After any appeal, we fully expect Boeing to preserve every
aspect of the Washington state incentives, including the 777X
revenue tax rate," Michael Luttig, Boeing's general counsel,
said in the statement.
Boeing's external legal adviser, Robert Novick, co-managing
partner of law firm WilmerHale, said the WTO appellate body
frequently reverses prohibited subsidy findings.
(Reporting by Tim Hepher; Editing by Bate Felix)