In response to Washington's move to request formal dispute settlement on Europe's subsidies to Airbus, the European Union (EU) on Tuesday fought back by resuming its legal case against US support for aircraft maker Boeing at the World Trade Organization (WTO).

"The subsidies the United States grants to Boeing have damaged the trade of Airbus and breached US obligations in the WTO. Consequently, the EU has decided to resume its action in the WTO to confirm through a WTO panel the illegality of these subsidies," said a declaration issued by the European Commission, the EU's executive body.

"I am disappointed that the United States has chosen confrontation with Europe," EU trade commissioner Peter Mandelson said.

"America has no appetite for negotiations, we have no alternative,... Europe is ready," he said.

The two sides agreed in January to suspend the cases filed against each other in the WTO and sought a negotiated settlement that would eliminate subsidies enjoyed by the aviation giants.

But the talks broke down in March and the United States said on Monday it was reopening its case against Airbus at the Geneva- based trade body.

Official figures showed that Airbus has got 3.7 billion US dollars in support since 1992 while Boeing got 29 billion US dollars in direct or indirect supports in the same period including 1.6 billion US dollars of launch investment from Japan for Boeing's risk-sharing partners in the B-787.

"I am confident that launch investment for Airbus is compatible with WTO rules,... I also believe that the United States is vulnerable on what Boeing receives," the commissioner said.

The legal action at the WTO is likely to be the largest commercial dispute in history.

However, to avoid escalation of the transatlantic trade disputes, the US and the EU said in a joint statement on Monday that they would not let their disputes spill into other trade areas, including the Doha round talks.

Source: Xinhua