US and EU Trade Talks on Boeing and Airbus Dispute Spark Acrimony

Weeks of delicate negotiations between US Trade Representative Robert Zoellick and EU Trade Commissioner Peter Mandelson over government subsidies for Boeing and Airbus imploded on Friday night, leaving the future of negotiations in doubt. According to sources, the talks ended in acrimony, with both sides accusing each other of breaking off the discussions. The US warned it would return to the World Trade Organisation to try to force an end to subsidies for Airbus unless the EU agreed to maintain a standstill on launch aid.

Key Takeaways:

• The negotiations between Robert Zoellick and Peter Mandelson broke down due to acrimony and personal outbursts.
• The US accused the EU of "terminating" the call on Friday night, while the EU official spoke of the "level of aggression" shown towards the European side.
• Richard Mills, the spokesman for Mr. Zoellick, was likened to a "pit bull" by an EU official.
• The two parties indicated their readiness to maintain a dialogue, but only after a cooling-off period and with pre-conditions.
• The core issue in the dispute remains the EU's willingness to give up launch aid for Airbus.
• The US is set to return to the World Trade Organisation to try to force an end to subsidies for Airbus unless the EU agrees to maintain a standstill on launch aid.

Statistics:

• The negotiations between Robert Zoellick and Peter Mandelson ended in acrimony after an hour-long teleconference on Friday night.
• The talks had been ongoing for weeks with the aim of resolving the dispute over government subsidies for Boeing and Airbus.
• The January 11 agreement set a framework for the talks and provided for a freeze on subsidies and legislation.
• The agreement has an April 11 deadline for resolving the dispute, which the US is willing to extend.

Sources:

• Financial Times, Sunday, (no date listed)
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