SEATTLE—Boeing is looking on the bright side after the World Trade Organization ruled that the aircraft manufacturer illegally benefitted from subsidies from Washington state. Boeing said the decision was a victory in that the WTO rejected all but one of the claims from the European Union saying the incentives were anti-competitive and unfair to rival Airbus.

WASHINGTON—Labor concessions and substantial government subsidies have been crucial to the revival of U.S. manufacturing, says one expert.