Boeing has asked for a key tax break to be suspended to end a 16-year, tit-for-tat trade war with Airbus.
The Seattle-founded planemaker will hope the unexpected concession will stop the European Union imminently imposing tariffs on US goods, and comes a week after the US imposed strict tariffs on Airbus.
The World Trade Organisation had previously accused both of the world’s largest planemakers of receiving billions of dollars of unfair subsidies in cases dating back to 2004.
Boeing said in a statement, “This legislation demonstrates the commitment of Washington – and of the United States – to fair and rules-based trade, and to compliance with the WTO’s rulings.”
On Wednesday, Washington state lawmakers moved to finally end the US$200 million tax break that benefited Boeing and other local aerospace firms.
The state’s governor, Jay Inslee, claimed Boeing had initiated the decision.
Governor Inslee said, “There is broad agreement in Olympia that we need to act this session to address the WTO issue in order to avoid retaliatory tariffs that would damage not just our commercial aircraft industry, but other important Washington exports.
“Boeing has said it would like that tax incentive at least suspended until the issue is fully settled with the European Union.”
However, Boeing warned in its statement that it expects its rival to follow suit, saying, “Now is the time for Airbus and the European Union to finally come into compliance by ending illegal launch aid subsidies once and for all and addressing the harm they have caused the United States aerospace industry and its workers.”
