BRUSSELS - The EU and the US still have a "window of opportunity" to amicably resolve a row over aid to aircraft makers Boeing and Airbus, the EU executive said Monday but warned talks could not drag on too long.
The European Commission, speaking as a self-imposed deadline for a negotiated settlement passed, reiterated that it "currently" had no plans to launch legal action to the World Trade Organization (WTO) over the dispute.
"As long as no action is taken, there is a window of opportunity for negotiations," said a spokeswoman for European Union (EU) trade commissioner Peter Mandelson.
"While there is a chance to negotiate and to avoid dispute we should try to make good use," she said, but added: "This period cannot drag on for too long because there are important commercial interests at stake."
The US government and the EU on January 11 gave themselves 90 days to resolve their dispute over aircraft subsidies, agreeing in the meantime not to extend any fresh subsidies or to seek WTO arbitration. That deadline expired Monday.
The attempt to strike a negotiated accord came after both sides pulled back from the brink of action to the WTO, which both Brussels and Washington agree would seriously escalate the political significance of the row.
The EU commission spokeswoman declined to say how long further negotiations could continue, but insisted that the European bloc has no plans to take WTO action.
"Both parties are free to return to the WTO or provide WTO legal support to their manufacturers," she said, but added: "We've also said that we do not currently intend to initiate a dispute to the WTO."
Asked how long talks could continue, she said: "There is no new standstill period." But she added: "We consider that such a period cannot drag on for too long."
04/11/2005 10:44 GMT