EU demands news on US aircraft row

THE EU yesterday demanded to know whether Washington is still interested in talks to resolve a decades-old trade dispute over subsidies given to aircraft makers Airbus and Boeing.

Trade Commissioner Peter Mandelson was “frankly surprised” the US had threatened to cut off talks last Friday, EU spokeswoman Claude Veron-Reville said in Brussels, adding that no official word was given directly to Mr Mandelson.

“We feel that the ball is very clearly in the American court and we are waiting for them to clarify their position,” Veron-Reville said. “We understood from some press statements that they were withdrawing from the negotiations, but we received no prior communication of that.”

US spokesman Richard Mills said on Friday the US may reinstate a formal complaint with the WTO because the EU “is unwilling to eliminate launch aid subsidies for Airbus.”

Veron-Reville said, however, that the talks had made progress. But she warned that the EU would not sign an unbalanced deal, cutting subsidies equally to the two companies, and said the EU would only resume talks after getting a clarification.

“We are willing to go on negotiating, but clearly not at any price,” she said.

She reiterated the EU’s warning that if the US files a case at the WTO, the EU will file a countersuit.

Washington and Brussels have accused one another of trying to renege on a pledge to resolve the trade spat. The January pledge was seen at the time as symbolic of President George Bush’s attempts to mend relations with European leaders.