WASHINGTON (AFP) - The United States will press the European Union this week for a pledge to end subsidies to Airbus Industrie, warning it may take the matter to the World Trade Organization, a US trade official said.
Washington has stepped up criticism of EU aid to Airbus allowed under a 1992 US-EU agreement, saying the European maker is putting US rival Boeing Co. at a disadvantage in the global market.
"It's time to put an end to new subsidies, since Airbus and Boeing are now peers in the marketplace," Richard Mills, spokesman for the US Trade Representative's (USTR) office.
EU and US aviation experts are to hold talks on Thursday in Brussels, with EU officials signaling they are is open to renegotiating the agreement.
The 1992 agreement allows the EU to advance up to 33 percent of the European aeronautics industry's research and development costs through loans reimbursable over 17 years.
"We view this meeting as key to assessing if the EU has any serious interest in negotiating a clear end to new subsidies," Mills told AFP.
"We're looking to replace the 1992 US-EU agreement ... and we are pursuing all our options, which could include the WTO option."
A WTO complaint could, if successful, allow Washington to impose trade sanctions on the EU.
Mills disputed EU claims that Boeing receives US government support through a variety of defense contracts.
"Defense procurement is not a subsidy," he said. "When Boeing wins a government contract, it must provide a good, a product, to get money from the government. Airbus on the other hand gets money from the government simply to subsidize the cost of developing airplanes, which they are then able to sell on the market."
Moreover, Mills said "It's a little hard to understand this issue, since the owners of Airbus have combined defense revenues that are similar or virtually equal to Boeing's. One way or another, it's time to level the playing field."
Earlier Tuesday, EU officials were firm on their stand that Boeing's indirect support should be considered against the direct aid to Airbus.
"Any changes to the (1992) agreement should make sure that Boeing does not get any more support than Airbus would get in the form of direct support," commission spokeswoman Arancha Gonzalez said.
Boeing, citing to EU documents, has said the subsidies have reached 35 billion dollars (28.7 billion euros) over the past 12 years.