EU Trade Commissioner Peter Mandelson Embroiled in Airbus-Boeing Dispute

Strategic Insights -

As Britain's Tony Blair gears up for a third election campaign, his former trusted advisor Peter Mandelson is stuck in Strasbourg, addressing routine European Parliament meetings. However, Mandelson's new role as European Union trade commissioner has proven challenging, with a bitter dispute between the EU and the US over subsidies to Airbus and Boeing threatening to damage his reputation. The row has escalated into a personal feud between Mandelson and outgoing US trade representative Bob Zoellick.

Key Takeaways:

  • The EU-US trade dispute over Airbus and Boeing subsidies has reached a boiling point, with the US accusing Mandelson of using "spin" and lacking the promised cuts in aid to Airbus.
  • The dispute has personal undertones, with Zoellick and Mandelson engaging in a war of words, with Mandelson labeling Zoellick as "intellectually arrogant" and Zoellick comparing Mandelson unfavorably to his predecessor, Pascal Lamy.
  • The EU's trade team acknowledges that a personality clash between Zoellick and Mandelson has contributed to the worsening of transatlantic trade relations.
  • The Europeans have shifted their position in favor of the Airbus dispute, with Mandelson now backing the European Commission and France to counter US trade pressures.
  • British Prime Minister Tony Blair has intervened in the dispute, publicly supporting Airbus and hinting that he would favorably consider an application for "launch aid" for the company.

Statistics:

  • The US Senate passed a resolution by 96-0, urging the Bush administration to return swiftly to the WTO to address the Airbus dispute.
  • The resolution claimed that the loss of subsidies to Airbus has resulted in the loss of over 60,000 high-paying US aerospace jobs and $30 billion in market-distorting subsidies.
  • Airbus is expected to receive additional "launch aid" funding, potentially sparking further WTO action from the US.

Sources:

  • The Economist

Note: All listed statistics and dates are directly taken from the provided source material.