FACTBOX-Issues in EU case against Boeing

Published 09/15/2010, 12:40 PM
Updated 09/15/2010, 12:44 PM

Sept 15 (Reuters) - World Trade Organization judges issued a confidential interim ruling on Wednesday in the case brought by the European Union against U.S. federal and state aid for aircraft maker Boeing.

The following are the main claims raised by the EU.

* NASA-funded federal research programmes have injected more than $10 billion into Boeing. The U.S. defends these funds as being payments for a service; the EU says they break WTO rules.

* The U.S. Department of Defense (Pentagon) has given Boeing $2.4 billion worth of dual-use technology for its large civil aircraft, as well as access to the department's facilities, equipment and staff.

* Boeing received $726.4 million worth of intellectual property rights in free patents, industry secrets and data rights from NASA and the Pentagon for its large civil aircraft.

* NASA and the Pentagon paid Boeing another $3 billion for independent research and to pay for Boeing government contract bids. Washington says these payments are legal commercial transactions.

* Washington state gave Boeing $3.5 billion in illegal tax breaks, tax rate discounts, interest subsidies and bond issuance. Illinois and Chicago gave Boeing a relocation package, tax credits and rent subsidies. Kansas supports Boeing with a $900 million package of tax breaks and subsidised bonds.

* Boeing is still eligible for $2.2 billion of export subsidies known as Foreign Sales Corporation, which the WTO has already ruled illegal.

* All U.S. support, which has helped Boeing launch its 787 Dreamliner, is non-repayable. By contrast, Boeing's European rival Airbus has to repay EU support. Airbus has been losing sales and market share to Boeing, which the EU attributes to subsidies for Boeing. (For story on WTO ruling click on) (Source: European Commission) (Compiled by Juliane von Reppert-Bismarck; Edited by Jonathan Lynn)

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