Airbus, the European aircraft maker, recently launched what it described as a final step aimed at stopping a transatlantic trade war on billions of dollars in aircraft support.
Airbus said it had agreed to pay higher interest rates for government loans it had received from France and Spain to develop its A350, which entered service in 2015. The company did not disclose the cost of the additional payments, which would become due when the plane was delivered abroad.
The failure of the European Union to withdraw support entirely for Airbus caused the World Trade Organization to agree to impose US sanctions that began late last year on European goods amounting to $ 7.5 billion.
Trade groups are preparing for an escalation of the conflict in the fall, as the European Union is expected to win the WTO approval to impose its own duties on American goods in response to Boeing’s support, which the organization has found illegal.
In a record dispute dating back to 2004, the World Trade Organization ruled that the European Union and the United States had awarded grants to their two aircraft manufacturers. In the past eight years, the debate has been mainly about whether each party has complied with these provisions. “With this final step, Airbus considers itself fully committed to the provisions of the World Trade Organization,” Airbus said.
In May, the United States announced itself to be in full compliance with WTO provisions after Washington State canceled tax exemptions on the space industry, which Boeing has benefited greatly from.
A European source said that although Airbus is not an official party in the case, in which the United States faces the European Union as well as France, Germany and Spain, the latest statement opens the door to negotiations to end the conflict.
The parties repeatedly urge negotiations, while each accuses the other of failing to respond seriously to the invitation.
Airbus is the aircraft manufacturer of EADS, European Aerospace Industries. It is based in Toulouse, France, and is very active throughout Europe, producing nearly half of the world’s jet aircraft.
Airbus employs approximately 57,000 people in sixteen locations in four European Union countries – Germany, France, the United Kingdom, and Spain. Final production assembly headquarters are located in Toulouse, (France), Hamburg, (Germany), Seville, (Spain), and since 2009, Tianjin, (China). Airbus also has branches in the United States, Japan and China. Airbus has become the world’s number one company in commercially viable production and marketing.
While Boeing Commercial Aircraft Manufacturing is one of the units of the American Boeing Company. The company is headquartered in Renton, Washington State. Boeing is the largest civil and military aircraft manufacturer, and civilian aircraft are manufactured by this unit.