There is still a chance for the EU and Washington to resolve a dispute over subsidies enjoyed by aircraft makers Airbus and Boeing without a showdown at the WTO, Europe's trade chief said today.
"Taking cases to the WTO (World Trade Organisation) is, in my view, not the appropriate way to deal with a dispute between two hugely successful companies for whom there is adequate room for both to prosper in the global market," European Union Trade Commissioner Peter Mandelson said.
EU Trade Commissioner Peter Mandelson
"There remains a window of opportunity for negotiation and we are ready to use it," he told a news conference. The United States and the EU put aside competing lawsuits at the WTO in January to negotiate a deal cutting the billions of dollars in state support enjoyed by the aviation titans.
But the talks faltered and they missed an April 11th deadline. Both sides have since stressed their readiness to give talks another try to avoid putting the case in the hands of the WTO, which could put huge strains on transatlantic relations.
"The lines of communication remain open," Mr Mandelson said. "The EU remains ready to negotiate a balanced, phased agreement to reduce and eventually eliminate subsidies for large civil aircraft production."
Washington took its aircraft subsidies case to the WTO first, worried that "launch aid" soft loans from EU states for Airbus's latest offering, the A350, could challenge Boeing's new 787 Dreamliner, a 250-seat long-range aircraft.
It has warned it will reopen its case against the 25-nation EU if the bloc's member states approve fresh support for Airbus, opening what could be the largest commercial dispute ever.
However, the EU says it cannot negotiate indefinitely because Airbus will at some point seek loans to launch the A350.
"The United States should be clear that Airbus intends to produce the A350 just as Boeing intends to produce the 787 Dreamliner," Mr Mandelson said. "No doubt both will be very good aircraft with plenty orders for both to prosper."
The commissioner gave no indication of when Airbus would seek launch aid for the A350.