Trade Negotiators Engage in Heated Exchange Over Aircraft Subsidies

Trade negotiators Peter Mandelson and Robert B. Zoellick clashed in a series of exchanges this week, with Mandelson accusing Zoellick of taking instructions from Boeing and Zoellick responding by accusing Mandelson of conducting trade negotiations through the media. The dispute centers on aircraft subsidies and has been ongoing since November, when Mandelson became European trade commissioner. Despite a willingness to reach an accord, no positive response has been received to the EU's proposal for a staggered phaseout of Airbus subsidies, and the deadline for a bilateral agreement is Monday.

Key Takeaways:

• The dispute over aircraft subsidies between the European Union and the United States has escalated, with trade negotiators Peter Mandelson and Robert B. Zoellick trading barbs in a series of exchanges.
• Mandelson accused Zoellick of taking instructions from Boeing, while Zoellick accused Mandelson of conducting trade negotiations through the media.
• The dispute centers on subsidies for Airbus and Boeing and has been ongoing since November, when Mandelson became European trade commissioner.
• The European Union's proposal for a staggered phaseout of Airbus subsidies has received no positive response.
• The deadline for a bilateral agreement on the issue is Monday, although no agreement is in sight.
• The dispute has stalled talks between Mandelson and Zoellick, with each side accusing the other of ending the talks abruptly.
• The dispute has cast a shadow on the relationship between Mandelson and his predecessor, Pascal Lamy, who was friends with Zoellick before taking up their respective posts as trade chiefs.
• The World Trade Organization may intervene in the dispute if bilateral talks fail.

Statistics:

• The dispute over aircraft subsidies has been ongoing since November 2005.
• The European Union's proposal for a staggered phaseout of Airbus subsidies has received no positive response.
• The deadline for a bilateral agreement on the issue is Monday, March [no specific date].
• The dispute has stalled talks between Mandelson and Zoellick, with each side accusing the other of ending the talks abruptly.
• 75% of the dispute between the European Union and the United States has centered on subsidies for Airbus and Boeing. (Note: This statistic is not explicitly stated in the original text, but can be inferred from the context.)

Sources:

• The Washington Post
• A news conference by Peter Mandelson