US says few options are left apart from WTO in aircraft subsidy conflict

Airline Industry Information, April 5, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

The US is left with few options but to take the conflict over aircraft subsidies to the World Trade Organisation (WTO), according to the US Deputy Secretary of State Robert Zoellick.

Zoellick said that the European Union is not serious enough about the negotiations regarding subsidies to Airbus and Boeing. The EU has no desire to cut the subsidies that allow Airbus to launch new models, according to the US representative.

The EU External Relations Commissioner Benita Ferrero-Waldner, relaying a message from the EU Trade Commissioner Peter Mandelson, however said that the EU is still serious about reaching an agreement to cut subsidies, The Associated Press reported. Mandelson and Zoellick reportedly made an agreement in February this year for a partial removal that would see some subsidies lifted by 11 April while the main agreement would be reached at a later stage.

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