Trade dispute escalates as Airbus says aid pledges 'binding'

Europe and the US moved closer to a world trade showdown over plane subsidies, as Airbus said it had received “legally binding” government funding pledges for its newly-launched A350 jet programme.

US diplomats in Geneva yesterday asked the World Trade Organisation to appoint panellists to adjudicate its case against European government funding for Airbus - and the EU immediately took the same formal step in its countersuit against Boeing subsidies.