The World Trade Organization next week is expected to issue a long-awaited ruling on the European Union’s challenge to alleged U.S. subsidies to aircraft maker Boeing, a decision which could have major implications in the competition for a multi-billion dollar U.S. Air Force contract.

The allegations by the European Union stem from the claim that the American aircraft maker illegally benefits from billions in research and military contracts, as well as targeted tax breaks.

The ruling, which will hardly be the end of the long-running battle, is expected to be handed down as early as September 15. If the WTO sides with the European Union, the U.S. would still have the opportunity to appeal the ruling.

In June, the WTO ruled that European aircraft maker Airbus received nearly $20 billion in illegal government subsidies in the form of “launch aid” that provided the company with a competitive advantage over rival aircraft makers.

The WTO found that the company has received illegal subsidies from the European government since 1969, much of those in the form of loans at below-market rates. The company has also benefited from billions in illegal infrastructure related grants and equity infusion, the ruling said.

All the government aid has prevented the company from accumulating massive amounts of debt over the years and also was an integral part of the company surpassing Boeing earlier this decade to become the world’s top aircraft manufacturer.

The company has been battling with U.S. aircraft maker Boeing over the right to furnish the U.S. Air Force with a fleet of new refueling tankers. The acrimonious bidding process is already spilling into its ninth year. Both aircraft manufacturers have bitterly battled over the lucrative $35 billion contract. The process has become a politically sensitive issue plagued by ethics scandals, bribes, investigations and, of course, trade disputes.

Roughly 14,000 American jobs are at stake in the deal in the near-term. Furthermore, the winner of the contract will be provided a built in advantage in future competitions, which is significant because the Air Force will likely replace its entire fleet of tankers again in the near future at an ultimate cost of $100 billion.

Moreover, Boeing desperately wants to win the contract to keep its edge in the manufacturing of commercial aircrafts. Currently, Boeing enjoys a virtual monopoly in that department, with no domestic competition. If Airbus were to win the contract, the company has stated its intentions to build a manufacturing facility in Mobile, Ala. and enter the U.S. market building commercial aircrafts.

While campaigning for the presidency, Barack Obama said that he believed that the U.S. military contract should be awarded to the American company.

“If we’re going to create an enormous contract for the U.S. military, I would think we would want … U.S. companies that are employing U.S. workers,” he said.

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