EU Seeking New Sanctions in Airplane Trade Dispute

Posted September 27th, 2012 at 12:15 pm (UTC-5)
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The European Union is asking the World Trade Organization for $12 billion in new trade sanctions against the United States in the long-running dispute over government aid for the world's largest plane makers, Airbus and Boeing.

The WTO at various times has found both the EU and the U.S. at fault in the dispute — saying the European governments provide excessive subsidies to French-based Airbus and that the U.S. has given Boeing too much. The dispute has now lasted seven years.

The EU said it is basing the new claim on what it says is “unfair and biased competition” from the U.S. The 27-nation EU said the U.S. “has not lived up to its obligation” to end its Boeing subsidies.

The U.S. earlier this week said it complied with an earlier WTO ruling to stop some payouts to Boeing from its space and defense agencies, a claim the EU rejected.