US to Resume WTO Case Against EU's Airbus Subsidies

The United States will file a request with the World Trade Organization (WTO) to establish a dispute settlement panel to resolve the trade dispute over the European Union's subsidies to Airbus, a major rival of US aircraft maker Boeing, US Trade Representative Rob Portman announced. The decision comes after the EU launched a new aid package of $1.7 billion to Airbus. Portman stated that the US prefers a negotiated settlement and has given the EU time to reconsider its plans to provide new subsidies. However, if the EU does not commit to ending subsidies, the US will proceed with the WTO case.

Key Takeaways:

• The US will file a request for a WTO dispute settlement panel to resolve the trade dispute over EU subsidies to Airbus.
• The EU has launched a new aid package of $1.7 billion to Airbus, prompting the US to take action.
• US Trade Representative Rob Portman said the US prefers a negotiated settlement but will proceed with the WTO case if the EU does not commit to ending subsidies.
• The negotiations between the US and EU failed to resolve the trade dispute, and the US had previously warned it would resume the case at the WTO if the EU provided new government loans for Airbus.
• The two sides had attempted to resolve the subsidy dispute through a three-month negotiating period, but ultimately, the talks failed.
• The US has brought a complaint against EU subsidies to Airbus with the WTO, which led to a counteraction from Europe against what it termed indirect US government aid for Boeing.

Statistics:

• $1.7 billion: The amount of new aid package launched by the EU to Airbus.
• 3 months: The duration of the negotiating period attempted by the US and EU to resolve the subsidy dispute.
• 1 November (last year): The date when the US lodged a complaint against EU subsidies to Airbus with the WTO.

Sources:

• XINHUA News Agency
• United States Trade Representative
• World Trade Organization (WTO)