US says no deal with EU on aircraft subsidies

A 90-day negotiation period has failed to resolve the trade dispute between the United States and the European Union (EU) over commercial airline subsidies, the US Trade Representative's office said Friday.

The office warned that it will resume its case at the World Trade Organization (WTO) if the European Union approves a new round of government loans for the aircraft maker Airbus.

"In the event that the EU proceeds with additional subsidies for Airbus large civil aircraft, the United States will return to WTO dispute settlement," Richard Mills, a spokesman for the US Trade Representative's office said in a statement.

But the United States remains prepared to continue negotiations with the EU after a Monday deadline expires, according to the spokesman.

The United States and the EU on Jan. 11 gave themselves 90 days to resolve the dispute over aircraft subsidies.