Caobisco joins major coalition calling for end to EU/US Boeing trade dispute

  • Caobisco joins major coalition calling for end to EU/US Boeing trade dispute

Caobisco joins major coalition calling for end to EU/US Boeing trade dispute

Lighthizer said the ruling clearing the way for US$4 billion in European Union tariffs on American goods had "no valid basis" because it was based on a tax provision by Washington state, where Boeing is based, that had been repealed earlier this year.

The World Trade Organization decision is part of a 16-year-old dispute over granting subsidies Boeing.

The Tuesday decision marks the consummation of a 16-year-long legal battle before the WTO.

The European Union and the USA exchanged tariff threats this week after the World Trade Organization, in its ruling over illegal state aid America provided to Boeing Co., gave the EU permission to impose duties on $4 billion worth of US goods.

Under the USA offer, interest rates on past loans to support Airbus development programmes would be reset to a level that assumed that only as few as half of the projects would succeed, two of the sources said, speaking on condition of anonymity.

As a goodwill gesture, the associations called on the United States to suspend additional tariffs imposed on European products as part of the Airbus trade dispute and on the EU to refrain from imposing additional tariffs on U.S. products, while negotiations are under way.

But he warned in the absence of "constructive" U.S. participation even after the elections, the European Union will press ahead with tariffs. The imposition of $7.5 billion of USA tariffs over Airbus subsidies has already started to hit European goods.

The offer is not likely to fly with the E.U. One European source called the USA proposal "insulting".

That would mean a higher risk than Airbus partner nations - Britain, France, Germany and Spain - have traditionally priced into the loans and reflects a speculative type of investment.

The earliest date that the European Union could trigger new USA tariffs is October 26, when Brussels can request and the WTO can grant formal authorization to retaliate legally under global rules.

A United States source, meanwhile, said Lighthizer was "serious" about getting Airbus to hand back aid. She told us about 7 of these stocks that boomed in the recession - and are likely to perform better in the recovery. Both sides have urged negotiations while accusing the other of refusing to engage seriously.

Representatives from the Office of US Trade Representative Robert Lighthizer, European Commission and the EU executive, did not immediately respond to requests for comment.

Airbus says the disputed system favours taxpayers because loan repayments on successful jets such as the A320 far outweigh amounts written off on jets that fail to reach sales targets.

"The US is determined to find a resolution to this dispute that addresses the massive subsidies European governments have provided to Airbus and the harm to US aerospace workers and businesses", Lighthizer said.