Wednesday, 21 May 2014

Europe To Raise Concerns Over Boeing Tax Breaks

Ministers from France, Germany, Britain and Spain said they would will work together with the European Commission to raise their concerns over tax breaks received by Boeing, which they said represent unfair subsidies.
Boeing has received USD$8.7 billion in tax breaks from the state of Washington for production of the 777x, with Airbus describing the tax breaks as "unacceptable".
The so-called "Airbus ministers", who regularly meet at Europe's three airshows in Paris, Farnborough and Berlin to discuss the civil plane making business of Airbus, said they would support the Commission in making additional representations about the subsidies and would raise written concerns.
The move could 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 WTO, which in turn could set the tone for sanctions.
"This is an additional distortion of the competition rules," Frederic Cuvillier, the French minister for transport, seas and fisheries, told journalists at the Berlin ILA Airshow.
British business minister Michael Fallon said he had already raised the issue with the US Department of Commerce and Boeing during a trip to Seattle last month.
Boeing has responded by saying that the tax breaks are available to all aerospace companies operating in the state.
The ILA Airshow is the world's oldest airshow and expected to welcome over 200,000 visitors, but it is much smaller than Europe's main airshows in France and Britain.

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  • Europe To Raise Concerns Over Boeing Tax Breaks Ministers from France, Germany, Britain and Spain said they would will work together with the European Commission to raise their concerns over tax breaks received by Boeing, which they said represent unfair subsidies. Boe… Read More

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