The European Union has opened the door to negotiations with the U.S. as a way to bring an end to the long-running trade battle over state aid to their respective aircraft manufacturers, Airbus and Boeing. Baroness Ashton, the EU’s trade commissioner, said the U.S. and Europe needed to ensure they maintained competitive aircraft industries despite the dispute between Boeing and Airbus now before the World Trade Organization, reported the Financial Times. Her comments came after some U.S. lawmakers claimed that a confidential interim ruling issued on Friday by the WTO had partly upheld Washington’s complaint that $15 billion in European loans to Airbus constituted illegal subsidies. During a weekend meeting with reporters in New Delhi, where she was attending a gathering of trade ministers, she suggested there was the possibility of negotiating a settlement in the months ahead. The opening of the door to a negotiated settlement was welcomed in Washington, where an administration official said: “We have always been ready to discuss an agreement with the E.U. European officials said negotiations to resolve the dispute were unlikely to begin before the WTO ruled on Europe’s case against U.S. aid to Boeing. This is expected in the next six to seven months. One source said the combined findings would provide the basis for a negotiated settlement between government. It was added the WTO was believed to have found some of the $4.3 billion in repayable launch aid for the A380, the world’s biggest passenger jet, was tantamount to subsidies as was funding for research, development and infrastructure. However, the panel noted that repayable aid could be an acceptable option for financing aircraft. The U.S. filed a WTO complaint in October 2004 challenging $15 billion in loans by E.U. governments for the development of the A380 airbus and other aircraft dating back to 1970. The E.U. filed its counter-complaint the same day.
European Union Seeks Appeasement with U.S. Over Trade
Baroness Ashton, the EU’s trade commissioner, said the U.S. and Europe needed to ensure they maintained competitive aircraft industries despite the dispute between Boeing and Airbus now before the World Trade Organization.
September 7, 2009