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EU Files Complaint With WTO In Response To U.S. Actions

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European Union Trade Commissioner Peter Mandelson announced that the EU is filing a copmlaint with the World Trade Organization related to its dispute with the United States over subsidies to Airbus and Boeing.

The complaint claims that the U.S. has been funding Boeing with illegal aid through military contracts. The U.S. previously filed a similar complaint accusing Airbus of getting illegal aid.

EU Files Complaint With WTO In Response To U.S. Actions

“In order to sustain conditions for fair competition in civil aircraft production and to maintain a proper commercial balance between the two companies, the European Union is resuming action in the WTO to confirm … the illegality of subsidies paid to Boeing,” said Mandelson.

For months, the United States and the Euopean Union have been having talks and trying to negotiate on this matter. They have been trying to avoid this legal action with the WTO, but yesterday, the U.S. backed out of the talks and went to the WTO. Now the EU has done what was expected and filed a counter complaint. AFX News Limited writes:

The simmering dispute over aid to Airbus and Boeing has become inflamed lately after Airbus requested UK government aid for its A350 long-haul plane designed to compete with Boeing’s planned 787 Dreamliner.

Mandelson added, however, that he will make all efforts to ensure the row does not damage broader trade relations between the EU and US.

“I can assure you Europe’s interests will be fully defended,” Mandelson said. He also said that he was “disappointed that the United States has chosen this confrontation with Europe.”

“America’s decision will, I fear, spark the biggest, most difficult and costly legal dispute in the WTO’s history,” he said, adding it would be “manifestly expensive and (involve) quite destructive litigation.”

According to U.S. Trade Representative Rob Portman, the Bush administration felt like it needed to act because EU member nations were preparing fund Airbus with $1.7 billion to Airbus to develop its A350.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.

EU Files Complaint With WTO In Response To U.S. Actions
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