US, EU to hold new talks on airplane subsidies dispute

The United States and the European Union will resume talks in a bid to resolve their disputeover government subsidies given to airplane makers, France-based Airbus and US-based Boeing Co., officials from the two sides announced Friday.

"We both would like to see a negotiated settlement," US Trade Representative Rob Portman said after a meeting with EU Trade Commissioner Peter Mandelson.

"The channels of communication between us are open," Mandelson said.

However, they gave no date when the two side would hold new negotiations.

Last October, the United States lodged a complaint against EU subsidies to Airbus with the World Trade Organization (WTO), triggering a counteraction from Europe against what it termed indirect US government aid to Boeing.

On Jan. 11 this year, the two sides said that they would try toresolve the subsidy dispute over a three-month negotiating period,deferring the cases they have brought before the WTO.

However, the negotiations failed to resolve the trade dispute. While saying it remained prepared to continue talks with the EU, the United States warned early April that it would resume its caseat the WTO if the EU provides new government loans to Airbus.

On May 30, the US government said that it was resuming a case at the WTO against the EU over the airplane subsidies dispute. Thenext day, the EU announced it would re-file its case against the United States.

Source: Xinhua