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Boeing's WTO Victory May Weigh on ETFs

By Don Dion

About this article:
A recent World Trade Organization (WTO) ruling will likely bolster Boeing (BA) backers and stifle Airbus supporters, but the decision's effect on ETFs will not be as cut and dry. On Sept. 4, the WTO issued its preliminary ruling that supported U.S. claims that Airbus had received illegal government subsidies from the E.U. While the WTO cannot impose any sanctions on the European government for supplying the company with $4 billion, the ruling could further enforce U.S. tariffs against Airbus and other European imports. Such a move would put Boeing in prime position to succeed in halting an Airbus bid for a U.S. defense contract. The defense contract currently being fought over concerns $40 billion for a military refueling tanker plane. With Airbus' WTO loss, Boeing is in a much more comfortable position to win the contract. Although the decrease in competition stemming from the decision will benefit Boeing, the...

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