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The European Union has demanded that the United States end subsidies to Boeing (NYSE: BA). This comes after the World Trade Organization appeal body upheld a ruling over illegal funding for the company. The WTO not only rejected the U.S. appeal, it found the United States guilty of having illegally funded Boeing to the sum of $5 billion to $6 billion.
The EU claims that the funding has been anti-competitive and caused harm to its own aerospace industry. But in the past, the EU itself has come under similar fire. The WTO has previously ruled that the EU illegally funded Airbus – ironically, the very company that EU officials are now saying is being harmed by the United States’ funding of Boeing. Analysts predict that the long-running litigious back-and-forth will likely end in a negotiated settlement.