U.S. and EU again at odds over Airbus subsidies at WTO

GENEVA – The European Union told the World Trade Organization’s dispute settlement body on Monday that it had acted within days of a WTO ruling to bring its funding of planemaker Airbus into line with WTO rules, a trade official who attended the meeting said.

The United States won a partial victory on May 15 against EU support for Airbus at the WTO, clearing the way for possible U.S. sanctions in a 14-year-old dispute over claims of illegal handouts for aircraft makers

The EU said last week it had taken steps to comply with the WTO ruling on subsidies for its A350, Europe’s newest long-haul jet, and the A380, the world’s largest airliner, and reiterated its efforts at a closed-door WTO meeting on Monday.

But a U.S. representative at the meeting said it was hard to give credence to the EU’s assertion and called for serious discussions to resolve the long-running dispute, although Washington was prepared to seek countermeasures on EU products if necessary, the official said.

The EU has said it expects to strike a similar legal blow later this year in a parallel WTO case about U.S. support for Boeing, raising the prospect of a tit-for-tat sanctions battle.

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