The US today opened an aviation dogfight with Europe, scrapping a 12-year-old accord and filing a complaint with the World Trade Organisation over European subsidies to Airbus.
The US decision, announced in the run-up to the November 2 presidential election, makes good on President George W Bush's threat to take the politically charged case to the global trade body.
US Trade Representative Robert Zoellick released a statement today saying the US had been trying to convince Europe to halt billions of dollars in 'unfair subsidies' to Airbus.
'But the EU and Airbus appear to want to buy more time for more subsidies for more planes,' he said. 'That isn't fair, and it violates international trade rules'.
'Since we could not agree, the United States decided to pursue resolution through the agreed procedures of the multilateral trading system, by bringing a WTO case before an international dispute resolution panel,' he added.
Bush told Boeing aviation workers during a campaign rally in Seattle in August that he was ready to take a case to the WTO over the subsidies. Since its creation, Airbus has overtaken Boeing in many aviation sectors, and Bush said the government payments were 'unfair.'
Subsidies had been allowed under a 1992 transatlantic accord, which the US decided to scrap.
US giant Boeing has been raising concerns that Airbus will use European government subsidies to launch a rival plane to its planned twin-aisle fuel-efficient Dreamliner 7E7 jet. In an election year, Boeing's campaign has added bite.
The incoming European trade commissioner, Peter Mandelson, had said on Monday that he was keen to avoid a WTO battle over the subsidies.
