Bush administration said Friday that a 90-day negotiation period had failed to resolve a bitter trade dispute with the European Union over commercial airplane subsidies.
While U.S. officials held out the threat of resuming a trade case against the EU, they said the administration would not take that step as long as Europe did not go forward with new development subsidies for Airbus, the major competitor to U.S.-based Boeing Co.
``In the event that the EU proceeds with additional subsidies for Airbus large civil aircraft, the United States will return to the (World Trade Organization) dispute settlement,'' Richard Mills, a spokesman for the U.S. Trade Office, said in a statement.(AP)
Looks like this will only escalate if the A350 gets any development monies. Good!