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II - FACTUAL ASPECTS

Published online by Cambridge University Press:  12 December 2017

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Summary

2.1 This dispute concerns various alleged prohibited and actionable subsidies provided to and benefiting the United States' producers of large civil aircraft (the “U.S. LCA industry”), including, in particular, The Boeing Company and McDonnell Douglas Corporation prior to its merger with Boeing:

  • (i) Subsidies provided by state and local authorities. The European Communities alleges that U.S. states and localities, where research, development, production and headquarters facilities of the U.S. LCA industry are located, transfer in various ways economic resources to the U.S. LCA industry. In this respect, the European Communities challenges measures in the States of Washington, Kansas and Illinois, and their municipalities.

  • (ii) Subsidies provided by the federal government. The European Communities alleges that the U.S. Federal Government transfers economic resources to the U.S. LCA industry on terms more favourable than available on the market or not at arm's length through certain measures applied by NASA, DOD, DOC, DOL and through certain federal tax incentives.

  • 2.2 A detailed description of the measures at issue is contained in the European Communities' request for establishment, reproduced at Annex B of this report.

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    Publisher: Cambridge University Press
    Print publication year: 2014

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