Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

EU seeks plane subsidy deal, but U.S. not talking: bloc's trade chief

Published 09/16/2019, 09:34 AM
Updated 09/16/2019, 09:36 AM
EU seeks plane subsidy deal, but U.S. not talking: bloc's trade chief

By Philip Blenkinsop

BRUSSELS (Reuters) - The European Union is urging the United States to hold off trade sanctions and seek an agreement on aircraft industry subsidies, but Washington has shown no sign it wants to talk, EU trade chief Cecilia Malmstrom said on Monday.

The World Trade Organization has approved a U.S. request to impose tariffs on European goods, according to people familiar with the case, part of a 15-year dispute over subsidies for U.S. planemaker Boeing (N:BA) and European rival Airbus (PA:AIR).

The Geneva-based body is set to announce the scope of the sanctions in the week starting Sept. 30. It is also expected to clear the European Union to take action against U.S. imports early next year.

"Our view is that we have enough tariffs in the world as it is... The U.S. president likes to make deals so we have offered to try to make a deal to find a negotiated solution," EU Trade Commissioner Malmstrom told a briefing.

The EU presented a proposal in July to discuss issues raised by the cases, including aid for program development, repayable launch investment and tax subsidies.

"So far, unfortunately, the U.S. has not said that they are willing to negotiate, at least not until they have imposed their tariffs, which they are likely to do quite soon," Malmstrom said.

The EU trade chief said any EU-U.S. agreement could serve as a template for others to follow to create a level playing field.

"We also know other big players in the world, such as Russia and China but also others, are also subsidizing their civil aircraft industry," she said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The European Union has drawn up a list of U.S. imports, including aircraft, chemicals and food, worth $20 billion in readiness for a WTO decision likely to be early next year in the Boeing subsidy case.

Malmstrom expressed hope that the bloc would not have to use it.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.