EU Sees Boeing-Airbus Talks Unlikely During WTO Litigation

godking
11 July 2005 6:00am

Talks aimed at settling the Boeing-Airbus subsidy dispute are unlikely to resume as long as World Trade Organization litigation moves forward, European Union spokesman Anthony Gooch said Friday.

The U.S. and the EU have filed dueling complaints about aid to Boeing Co. (BA) and its European rival Airbus. The U.S. wants to block development aid for new Airbus planes, while the EU wants to rein in indirect support like local tax breaks and government research contracts.

Both sides are moving forward with WTO litigation, a lengthy and bureaucratic process that can take years. However, U.S. trade officials say they remain open to negotiating a settlement.

U.S. Trade Representative spokesman Richard Mills said the U.S. remained open to new talks if the EU were interested. In the meantime, the U.S. will move forward with its WTO case, he said in a telephone interview from London.

The current standoff is noteworthy because Airbus now is seeking launch aid for the A350, intended to compete with Boeing´s upcoming 787.

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