Mon, Sep 26, 2005
Let The Many Months Of Heated Negotiations Begin!
The United States and the European Union reached something of a
consensus last week in their battle over trade subsidies, by
agreeing to name a senior Mexican trade official to gather
information on alleged financial support by the respective powers
to aircraft makers Airbus and Boeing.
According to an Associated Press story, Mateo Diego-Fernandez
was named to oversee the task of collecting data on markets and
companies involved in the Airbus/Boeing subsidies dispute from
other members of the World Trade Organization.
"We are confident that the procedures which we have agreed upon
will allow both the [EU] and the U.S. to prepare properly in each
dispute toward a resolution of both disputes," European Union
representatives told the WTO's dispute-settlement body.
The World Trade
Organization set up legal panels two months ago to investigate
allegations by both the US and the EU, each claiming the other was
unfairly funding development for its respective aircraft
manufacturers.
While the WTO aims to settle the dispute, allegations continue
to, well, fly between the two sides. As was reported in Aero-News, a trade
representative from the United States last week told Britain in no
uncertain terms that loaning Airbus $680 million for the
development of its new A350 -- seen as a direct competitor to
Boeing's 787 -- would be "a step in the wrong
direction."
When the announcement of a neutral auditor was named, the US
said it was pleased the EU "is finally willing" to allow the
negotiation process to begin -- while also reaffirming that
Washington had been trying to get to that point for more than two
months.
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