On 6 October 2004, the United States requested consultations with the Governments of Germany, France, the United Kingdom, and Spain (the “member States”), and with the European Communities (“EC”) concerning measures affecting trade in large civil aircraft.

This paper analyses the most recent WTO Appellate Body (AB) report in a series of disputes between the U.S. and the EU over government support to aircraft manufacturers Boeing and Airbus. The measures under dispute in U.S. – Tax Incentives were investment promotion subsidies provided to Boeing...