Says It Won't Press Issue Of Japanese Subsidies To Boeing

The European Union says it won't pursue allegations that Japan illegally subsidized development of Boeing's up-and-coming 7E7 Dreamliner.

Etienne Reuter, a spokesman for the European Commission said in Tokyo, told Bloomberg News the EU has no plans for "specific actions against Japan." "We just note that in this trade dispute there might be some collateral damage for Japan."

It's the latest shot fired in a growing trade war between the US and the EU over subsidies paid to aerospace companies like Boeing and Airbus by governments worldwide.

Sorting out who paid what and under what circumstances may be tougher than officials on both sides of the Atlantic think. For instance, it's common practice for airplane manufacturers to find partners in major markets. So when Boeing gives companies like Ishikawajima-Harima Heavy Industries and Mitsubishi Heavy Industries 35-percent of the work on the Dreamliner, Bloomberg reports it's a very effective marketing ploy. It's no coincidence that some 80-percent of the aircraft flown by All Nippon Airways and JAL are made by Boeing.

FMI: www.boeing.com