WASHINGTON (AFP) - The United States opened an aviation dogfight with Europe, scrapping a 12-year-old accord and filing a complaint with the World Trade Organization over European subsidies to Airbus.
The US decision, announced in the run-up to the November 2 presidential election, makes good on President George W. Bush's threat to take the politically charged case to the global trade body.
US Trade Representative Robert Zoellick released a statement saying the United States had been trying to convince Europe to halt billions of dollars in "unfair subsidies" to Airbus.
"But the EU and Airbus appear to want to buy more time for more subsidies for more planes," he said Wednesday.
"That isn't fair, and it violates international trade rules. Since we could not agree, the United States decided to pursue resolution through the agreed procedures of the multilateral trading system, by bringing a WTO case before an international dispute resolution panel."
Bush told Boeing Co. aviation workers during a campaign rally in Seattle, Washington, August 14 that he was ready to take a case to the WTO over the subsidies.
Since its creation, Airbus has overtaken Boeing in many aviation sectors, and Bush said the government payments were "unfair."
Subsidies had been allowed under a 1992 transatlantic accord, which the United States decided to scrap.
"Consistent with today's decision to move forward with a WTO case, the United States also exercised its right, as provided by the 1992 agreement's terms, to terminate that agreement," the US statement said.
US giant Boeing Co. has been raising concerns here that Airbus will use European government subsidies to launch a rival plane to its planned twin-aisle fuel-efficient Dreamliner 7E7 jet.
In an election year, Boeing's campaign has added bite.
"This is about fair competition and a level playing field," Zoellick said.
"Since its creation 35 years ago, some Europeans have justified subsidies to Airbus as necessary to support an 'infant' industry. If that rationalization were ever valid, its time has long passed. Airbus now sells more large civil aircraft than Boeing," he said.
The 1992 US-EU deal had limited government support to one-third of the costs of developing new aircraft.
"We urged the EU to agree that neither of us should provide new subsidies to aircraft manufacturers," Zoellick said.
"We even were willing to accept subsidies in the pipeline but then draw the line. That's a fair offer," said Zoellick."
The United States was still interested in reaching a new agreement with the Europeans, he said.
"The United States remains interested in an agreement that ends all new subsidies. So as this case proceeds, we remain open to negotiating a new accord as long as it ends the new subsidies," Zoellick said.
Outgoing European Union trade commissioner Pascal Lamy, who leaves at the end of the month, warned Tuesday that the EU executive commission could challenge subsidies for Boeing's 7E7 if Washington attacked aid for Airbus.
"If the USA begins with Airbus, we will begin a case with the 7E7. And we are comfortable" with the chances of obtaining a favorable outcome, the European trade chief warned.
EU officials counter that Boeing benefits from "indirect" US aid in the form of defense contracts.
The incoming European trade commissioner, Peter Mandelson, had said Monday he was keen to avoid a WTO battle over the subsidies.