Thu, Oct 07, 2004
US Files WTO Complaint Over Airbus Subsidies
The time for talking is apparently over. The Bush administration
has taken its case about EU subsidies to Airbus to the World Trade
Organization, igniting what very well could be an aviation trade
war.
The US and EU had been talking about how to address the billions
of dollars in subsidies Airbus and its parent company, EADS, get
for research and development of new aircraft lines, as well as the
less overt subsidies Europeans say the US hands out to aerospace
companies like Boeing. US Trade Representative Robert Zoellick told
AFP he had been trying to convince the Europeans to stop the
subsidies.
"But the EU and Airbus appear to want to buy more time for more
subsidies for more planes," he said. "That isn't fair, and it
violates international trade rules. Since we could not agree, the
United States decided to pursue resolution through the agreed
procedures of the multilateral trading system, by bringing a WTO
case before an international dispute resolution panel."
Now, the US has decided to scrap the 1992 transatlantic
agreement that allowed the European subsidies. "Consistent with
today's decision to move forward with a WTO case, the United States
also exercised its right, as provided by the 1992 agreement's
terms, to terminate that agreement," Zoellick said.
If the US has its way, neither Airbus nor Boeing would get
government subsidies. "That's a fair offer," he told AFP.
He also said talks aimed at finding a resolution would continue.
"The United States remains interested in an agreement that ends all
new subsidies. So as this case proceeds, we remain open to
negotiating a new accord as long as it ends the new subsidies."
Both the EU and the US now have 60 days to start talks aimed at
reaching a settlement on the subsidy issue. If that fails, the
World Trade Organization will appoint a special committee to hear
the complaint and make a ruling.
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