US Trade Representative Jamieson Greer issued a warning to the European Union that the €3 billion loan to Airbus jeopardizes the 2021 tariff truce, calling the financing a subsidy that distorts competition.
The loan, announced in June by the European Investment Bank (EIB), is mainly intended to finance the research and development of the European aircraft manufacturer.
"I sincerely hoped that European subsidies that distort trade to Airbus were a thing of the past," Greer said, according to a statement from his office.
The US official claimed that his services have not received details about the loan and called for the issue to be resolved as soon as possible. According to the American side, this public aid offers an unfair advantage to Airbus.
Funding for research, innovation and defence
The EIB had described the financing as unprecedented in its history. As its vice president, Abruaz Fayol, told AFP, the goal is to give Airbus the ability and flexibility to make long-term investments in research, development and innovation.
Investments concern both civil aviation and the security and defence sectors.
The long-running Airbus-Boeing dispute
Greer's intervention brings back to the fore the trade dispute between the US and the EU over state aid to Airbus and its American competitor, Boeing. Since 2004, the two sides have accused each other of unfair practices, focusing on subsidies to the two companies.
In 2021, under President Joe Biden, Washington and Brussels reached a five-year agreement to suspend billions of dollars worth of additional tariffs they had imposed on both sides. These duties have not been reinstated since then.
The US warning comes four months after the 27 EU member states approved the comprehensive trade agreement with the US. The deal was negotiated last year, following successive tariff impositions by Donald Trump.
Source: RES-EAP
