U.S. holds out hope for aircraft subsidy talks

U.S. holds out hope for aircraft subsidy talks    Today marks the end of the three-month negotiating period for the United States and European Union to settle their dispute over state subsidies for large aircraft makers rather than pursue litigation through the World Trade Organization.
   The Office of the U.S. Trade Representative issued a statement Friday saying: “The United States regrets that it has not been possible to conclude such an agreement. The United States continues to believe that such an agreement would be a useful solution to this important issue, and remains prepared to negotiate on the basis of the Jan. 11 agreement, including the ‘standstill’ on subsidies.
   “The U.S. is reviewing the situation to determine the best course of action to obtain the elimination of subsidies to Airbus. In the meantime, we will continue to monitor closely the actions of the EU and its member states with regard to support for large civil aircraft. In the event that the EU proceeds with additional subsidies for Airbus large civil aircraft, the United States will return to WTO dispute settlement.”
   The statement was more conciliatory than one issued in March in which the United States accused the EU of backtracking on the terms of the negotiating agreement and being unwilling to end subsidies for Airbus.
   The subsidy dispute has taken on more significance the past couple of years as Airbus has overtaken U.S. plane maker Boeing as the world’s largest aircraft manufacturer.
   Deputy Secretary of State Robert B. Zoellick, the former U.S. Trade Representative, will continue to lead U.S. negotiations in the matter while the Senate considers the nomination of Robert Portman to succeed him in his previous post.