WT/DS353/34  
 
8 May 2020  
(20-3502) Page: 1/2 
  Original: English  
 
UNITED STATES – MEAS URES AFFECTING TRADE   
IN LARGE CIVIL AIRCR AFT 
(SECOND COMPLAINT)  
COMMUNICATION FROM THE UNITED STATES  
The following communication, dated 6 May 2020 , was received from the delegation of the 
United  States  with the request that it be circulated to the Dispute Settlement Body (DSB).  
 
_______________  
 
 
The United States wishes to inform the Dispute Settlement Body ( "DSB") of its compliance in the 
dispute United States – Measures Affecting Trade in Large Civil Aircraft (Second Complaint)  
(WT/DS353).  
 
Please find attached a document entitled "U.S. Notification of Compliance Through Withdrawal of 
Subsidies ". The United States requests that you please circulate this notification to the Members of 
the DSB.  
 
 
_______________  
 
  WT/DS353/34  
 
- 2 - 
 
  1. On April 11, 2019, the Dispute Settlement Body ( "DSB") of the World Trade Organization 
("WTO") adopted findings with respect to the compliance proceeding in the dispute United States – 
Measures Affecting Trade in Large Civil Aircraft (Second Complaint)  (WT/DS353). The DSB found 
that the United States continued to cause adverse effects in the post -compliance period to the 
interests of the European Union (EU) within the meaning of Article 5(c) of the Agreement on 
Subsidies and Countervai ling Measures  ("SCM Agreement ") through the use of a Washington State 
business and occupation (B&O) tax rate reduction, and the DSB did not adopt findings that any other 
measure continued to cause adverse effects to EU.1 
 
2. On March 25, 2020, the State of Washington enacted Engrossed Senate Bill 6690. This 
legislation, as of April 1, 2020, removed the preferential B&O tax rate for aerospace manufacturing, 
retailing, and wholesaling, by setting the aerospace B&O tax rates at 0.484 percent, which is equal 
to or higher than the generally applicable, standard rates, that is, 0.484 percent for manufacturing 
and wholesaling and 0.471 percent for retailing.2 
 
3. Through this action, the United States has withdrawn the subsidy found to be inconsistent 
with Article 5(c) of the SCM Agreement in the compliance proceeding. Thus, the United States has 
brought its measures into conformity with its obligations under the SCM Agreement and therefore 
fully implemented the DSB's recommendations in this dispute.  
 
 
_____ _____  
 
1 The compliance panel report contained a statement recommending the United States to "bring its 
measures found … {in the report} to be inconsistent with the SCM Agreement, into conformity with its 
obligations under that Agreement. " United States – Measures Affecting Trade in Large Civil Aircraft (Second 
Complaint) (Panel) , WT/DS353/RW, para. 6.18.  
2 Washington Engrossed Senate Bill 6690, p. 7, line 38 – p. 8, line 2 (Attachment 1) (codified in Revised 
Code of Washington, § 82.04.260(11)); Revised Code of Washington, §§ 82.04.240, 82.04.250, 82.04.270. 
See also United States – Measures Affecting Trade in Large Civil Aircraft (Second Complaint) , WT/DS353/R, 
para. 7.133 ( "The standard rate for manufacturing and wholesaling activities is 0.484 per cent and for retailing 
activities is 0.471 per cent. ").