EU Seeks To Avert Trade Row With US Over Airbus Subsidies

by Ulrika Lomas, for LawAndTax-News.com, Brussels

17 August 2004

Following remarks made by US President George Bush with regard to subsidies provided by the French, German and British governments to plane manufacturer, Airbus, the European Commission has offered to "discipline" government support to the firm if the United States is prepared to do the same for Boeing.

Speaking in Washington state on Friday, President Bush announced that:

"We think these subsidies are unfair and that (US Trade Representative, Robert Zoellick) should pursue all options to end these subsidies including bringing a WTO case if need be."

However, responding on Saturday in the hopes of averting another EU-US trade war, EC spokesperson Ewa Hedlund observed that:

"The EU has as strong an interest in disciplining government support to Boeing as the US has in disciplining support to Airbus." She went on to add that:

"Any discussion needs to address both direct support, as granted by European governments to Airbus in the form of repayable loans, and indirect support as provided by the US government to Boeing."

Bilateral talks are set to resume in September on the updating of the 1992 trans-Atlantic civil aviation accord.

Recommended