US ready to negotiate with EU beyond deadline on air subsidies: Zoellick

BRUSSELS - US Deputy Secretary of State Robert Zoellick said Monday the US was ready to negotiate a stubborn dispute with the European Union over aid to aircraft makers Boeing and Airbus after a deadline next week, but would press the case at the WTO if talks fail.
Both sides agreed in January to negotiate a phasing out of subsidies to develop commercial aircraft, thus avoiding taking the issue to the World Trade Organization.
They set a 90-day period to hammer out a deal, but there has been little sign of an agreement even though the deadline of Monday is fast approaching.
"If need be we are willing to carry the standstill beyond the 90-day period if the European Union can carry through on the core principles that we agreed on in January, but if not that is what the multilateral system is for," Zoellick told a news conference.

04/04/2005 16:35 GMT