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USA takes Airbus row to WTO

USA takes Airbus row to WTO

The USA has said it is to table a former complaint against the EU to the World Trade Organisation.

This is the latest shot in the long-running row between the US and the EU over the level and type of subsidies given to Boeing and Airbus.

Both sides accuse the other of giving illegal subsidies to their airline manufacturers and unfairly distorting the market.

The two sides had been in intense negotiations for a number of months.

On Friday, EU Trade Commissioner Peter Mandelson is believed to have met with US trade representative Robert Portman to offer cuts in funding for the Airbus A350 project – if America followed suit and axed aid to Boeing.

But Washington said the EU was just “spinning to the press” and would now take its case to the World Trade Organisation (WTO).

Rich Mills, a spokesman for Mr Portman, said: “We had an agreement with the Europeans that each side would quietly reflect on the Friday call over the weekend.

“This does not help our relations or the management of the US-EU relationship.”

The dispute over the 1992 EU-US “Agreement on Trade in Large Civil Aircraft” may upset relations at the forthcoming summit at the White House.

Mr Mandelson’s spokeswoman, Claude Veron, said last night: “This is a disappointing move by the US given the proposals for a negotiated solution the EU side made on Friday.”

The EU is expected to make its position clear later today and could choose to take a counter-case to the WTO.