U.S. to rap European Union over compliance in Airbus subsidy dispute

Tue Apr 16, 2013 11:59am EDT
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* WTO hearing to review EU compliance on Airbus subsidies

* U.S. claims EU ignored verdicts, still helps Boeing rival

* EU says it obeyed WTO, argues against Boeing's U.S. aid

* Epic legal fight could set tone for new competitors

By Tim Hepher

PARIS, April 16 (Reuters) - The United States and European Union are set to lock horns again over aircraft subsidies in the latest round of a record trade dispute involving Airbus and Boeing.

The United States will tell the World Trade Organization (WTO) on Wednesday that European governments have failed to obey demands to withdraw unfair subsidies for passenger jets, a U.S. source familiar with the case said.

The EU will defend its record in scrapping past subsidies while insisting that funding for the A350, due to make a maiden flight in June, is both fair and beyond the scope of the case.

Both sides have already won partial victories in the world's largest trade dispute, a nine-year legal quagmire.   Continued...