The European Union will file its written response with the World Trade Organisation (WTO) tomorrow, defending itself against US claims that it gave illegal subsidies to aircraft maker Airbus that damaged direct rival Boeing.
EU officials, speaking under condition of anonymity due to the sensitivity of the issue, said the US arguments were undermined by Boeing's glowing health and bright future.
They will file their own allegations against US state and federal subsidies to Boeing in March, when the WTO panel will hear European and American lawyers discuss the US claims.
The WTO is due to issue its final report on the US case against Airbus in October and the EU case against Boeing in April although this timetable may slip due to the complexity of the issues.
In Brussels, officials said the US was wrong to take 2001 and 2002 as a case study to highlight their claims since this was a time when the entire aviation industry suffered from the after-effects of the September 11 terrorist attacks and the SARS flu epidemic in Asia.
It would be fairer, they said, to look at 2001 to 2006 — a period that would cover Airbus' recent production delays and leadership crises.
AP