4. State of Illinois and municipalities therein

(a) Introduction

7.891 The European Communities argues that each of the four measures at issue is a subsidy within the meaning of Article 1 of the SCM Agreement, and is specific within the meaning of Article 2 of the SCM Agreement. The European Communities estimates that the total amount of the four subsidies to Boeing's LCA division is approximately $25 million over the period 2002-2021.

7.892 The United States accepts that these measures are subsidies within the meaning of Article 1 of the SCM Agreement, but argues that three of the four subsidies are not specific within the meaning of Article 2 of the SCM Agreement. In addition, the United States asserts that any amounts that Boeing receives after 2006 are “speculative” and fall outside of the Panel's terms of reference, and asserts that the total value of the four subsidies to Boeing's LCA division is [***] million over the period 2002-2006.

(b) The measures at issue

7.893 The European Communities' claim concerns four separate incentives that the State of Illinois and municipalities therein (i.e. Cook County and the City of Chicago2306) provided to Boeing in consideration for Boeing's decision to relocate its corporate headquarters from Seattle to Chicago in 2001. The first three incentives are derived from the Corporate Headquarters Relocation Act2307 (“CHRA”). The CHRA was signed into law on 1 August 2001, approximately one month before Boeing relocated its headquarters to Chicago.