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US Asks WTO Panel To Ensure EU Complies With Airbus Subsidy Ruling

By Tom Barkley Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- The U.S. has brought its long-running dispute against European Union support for Airbus back to the World Trade Organization, saying the EU has failed to comply with an earlier ruling to remove billions of euros in subsidies. While the EU has claimed to have fully complied with the WTO decision from last June, the U.S. says those claims haven't been substantiated. Not only are the WTO-inconsistent subsidies still in place, but the EU has even provided new ones, U.S. Trade Representative Ron Kirk said in a statement. "The European Union's aircraft subsidies have cost American aerospace companies tens of billions of dollars in lost revenue, which has cost American workers their jobs and hurt their families and communities," said Kirk. The U.S. has requested the WTO to meet on April 13, with the aim of establishing a compliance panel. "The United States remains prepared to engage with the EU in any meaningful efforts that will lead to the goal of ending subsidized financing at the earliest possible date," said Kirk. The move marks an escalation of the more than seven-year-old dispute pitting the E.U. and Airbus, a unit of European Aeronautic Defence & Space Co. (EAD.FR, EADSY) against the U.S. and its plane-making behemoth, Boeing Co. (BA). Earlier this month, the WTO largely upheld a ruling from competing case the EU launched against the U.S., finding that Boeing Co. received billions of dollars in illegal subsidies from U.S. federal and state agencies. -By Tom Barkley, Dow Jones Newswires; 202-862-9275; tom.barkley@dowjones.com

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