EU says US 205 bln usd claim over Airbus support 'unrealistic' |
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Tue, 24 Jul 2007 12:04
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BRUSSELS (Thomson Financial) - The European Commission has dismissed as 'unrealistic' claims by the US government that EADS' European aircraft maker Airbus has reaped benefits of 205 bln eur from public subsidies.The commission said: 'The US now seeks to argue that the benefit of (EU) member state financing alone amounts to as much as 205 bln sud. This 'estimate' is completely unrealistic. The calculation method used is contrary to accepted wisdom, practices and WTO subsidy rules.'The figure was put forward in a confidential US submission to the WTO panel, according to the EU official speaking to Agence-France Presse, who requested anonymity.A second hearing before the World Trade Organisation (WTO) panel will take place tomorrow and Thursday in Geneva, Switzerland between the US and the EU over contested subsidies for their aviation giants, Boeing Co and Airbus.The commission says the parties are at a 'key stage' of the dispute settlement process.The EU and US have been at loggerheads for years over accusations and counter-accusations that each provides state aid to its main aircraft maker -- Boeing in the United States and Airbus in Europe, in breach of WTO fair trade principles.The parties in 2004 lodged reciprocal complaints at the WTO, which a dispute settlement panel is now hearing.The WTO is set to issue a ruling on the US complaint against Airbus not before December. The EU lawsuit targeting Boeing is to get a hearing in July, with a decision unlikely before 2008.simon.zekaria@thomson.comsz/gpCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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