Bilateral bickering

In light of the European Commission's unwillingness to halt new subsidies for large civil aircraft, and with EU Member States preparing to commit $1.7 billion in new risk-free launch aid subsidies for Airbus, the

has filed a request for the establishment of a World Trade Organization (WTO) dispute settlement panel to resolve the dispute.

"For almost a year, the US has tried to convince the EU to negotiate an end to subsidies for large civil aircraft," said US Trade Representative Rob Portman. "So we were pleased when, on January 11th of this year, the EU agreed to a standstill on launch aid while we negotiated an end to subsidies. Unfortunately, at this point, the EU is no longer willing to hold off on launch aid, and has only proposed to reduce subsidies, not end them."

"We continue to prefer a negotiated solution, and we would rather not have to go back to the WTO. But the EU's insistence on moving forward with new launch aid is forcing our hand," added Portman.