Airbus row may lead to trade war between US and EU

The U.S. strengthens its firm position on EU possible financing of Airbus. Specialists say the dispute may be both harmful for the U.S. and European Union.

(PRWEB) October 10, 2004 -- The U.S. strengthens its firm position on EU possible financing of Airbus. Specialists say the dispute may be both harmful for the U.S. and European Union.

The U.S. claims Airbus subsidies may lead to unfair competition between Airbus and other airlines, such as Boeing and suchlike. "Since its creation thirty-five years ago, some Europeans have justified subsidies to Airbus as necessary to support an 'infant' industry. If that rationalization were ever valid, its time has long passed. Airbus now sells more large civil aircraft than Boeing," said U.S. Trade Representative Robert Zoellick. ``This is about fair competition and a level playing field," he added.

Specialists say the row wont do any good for the parties and their possible trade war unlikely to lead to something useful. "The dispute often doesn't pay and, in this case, there's a risk it will damage both the United States and the EU," the Italian Industry Ministry said in a statement.

Mutual relief cannot be reached as the parties did not succeed in the agreement. "We have been trying to, this year, reach an agreement but the Europeans seem to be fixated more on our elections with regards to these negotiations and discussions than we are. We tried to explain to them that this issue is not going away; there is a bipartisan consensus about this. It is not a partisan issue in the United States and this will go past our elections," said Richard Mills, an assistant US Trade Representative.

Solution of the problem so far delayed.

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