The Next Chapter of the Airbus/Boeing Pissing Contest

And it does not involve the tanker.

The WTO, after ruling that Airbus was the recipient of illegal state subsidies, has now ruled that Boeing has also received billions of dollars in illegal state subsidies:

The long-running trans-Atlantic spat over government support of the world’s two biggest aircraft makers gained fresh momentum on Wednesday as a trade panel found that Boeing had received subsidies that violated global trade rules, people briefed on the decision said.

American lawmakers said on Wednesday that the subsidies, $5 billion from federal and state agencies, were just a fraction of the $24 billion that Europe had alleged and were far less sweeping than the benefits its rival, Airbus, had received.

But European leaders said that the finding, by a panel of the World Trade Organization, showed that the United States had also relied on subsidies in the fight for plane sales, and that the ruling would help prompt negotiations to resolve the problems.

What is interesting here is that they cite the military contracts that Boeing gets, but also the tax abatements with the WTO board determining that, "Boeing had received subsidies through some of the research contracts from the National Aeronautics and Space Administration and the Pentagon, as well as through tax incentives linked to its facilities in Washington State, Kansas and Illinois." (emphasis mine)

This is about more than just the Airbus/Boeing subsidies. The WTO just ruled that the shakedowns that business inflict on communities by way of tax breaks are illegal subsidies under the current international trade regime..

This is a good thing.

I'd like to see Congress to find a way to ban this little bit of corporate pay-to play.