Posted on 03/29/2005 1:09:52 AM PST by Righty_McRight
WASHINGTON — In the aftermath of a breakdown in talks aimed at settling the largest trade dispute in U.S. history, Boeing Co.'s chairman is pushing a hard line and warning that any new European government support to archrival Airbus would prompt a new trans-Atlantic trade war.
Lewis E. Platt, who has taken a leading role at the aircraft maker since chief executive Harry Stonecipher was ousted in a sex scandal last month, accused Airbus of trying "to slide one more new plane under the door" by pushing for subsidies to launch the A350. "We reject that premise," he added.
The United States and the European Union have agreed not to create any new subsidies during a 90-day negotiating period that expires April 11.
Boeing is fighting to prevent any aid to the A350 in order to protect its newest offering, the 787 Dreamliner, previously called the 7E7.
Platt, in his first in-depth interview since Stonecipher's ouster, sought to buttress the U.S. government's resolve in the brewing trade dispute with Europe over government support of Airbus.
Boeing has claimed that France, Germany, Britain and Spain have granted more than $15 billion in subsidies to Airbus over the years, giving Boeing's rival an unfair advantage in its ability to launch new aircraft.
Talks broke down last weekend between the United States and EU after U.S. Trade Representative Robert Zoellick accused his European counterpart of backing away from an agreement that set the framework for a 90-day negotiating period that is set to expire April 11.
The EU negotiator, Peter Mandelson, sought to persuade the United States to allow subsidies for one more Airbus plane, the A350, which Airbus plans to launch as a competitor to the 787.
Boeing, which plans to roll out the superefficient 787 by 2008, is pushing for an agreement that bans government launch aid for any new airplanes.
Platt held out little hope that an agreement could be reached before the negotiating deadline expires.
Sticking points go beyond Airbus' effort to include the A350 among the planes that can receive aid.
Boeing is concerned that Airbus might seek new government support for its newest airplane, the A380 super-jumbo jet, which is over budget and has experienced slow sales. The Europeans, meanwhile, want to require Japan to participate in the talks. Japan is providing the center wing section of Boeing's new 787 and is expected to receive up to $1.6 billion in government financing.
The Europeans have talked about creating a separate agreement on supports for the A350 and Boeing's 787, then tackling the broader subsidy issues in separate talks. But Platt insisted the U.S. should accept no piecemeal solutions.
"We had hoped that some 60 days into this 90-day negotiating period that more progress would have been made," Platt said.
Still, Platt is not ruling out the possibility of a last-minute breakthrough in the talks.
"One never knows. Funny things happen at the very last minute," he said. "But it doesn't look great at the moment."
Ready, set, FIGHT
Boeing and Airbus....Rock on!
I thought people on here were against using the WTO and its agreements. If a country wants to give its industry a helping hand then it should be allowed to.
Deary me, they forgot the rules of European competition.
The E.U. is living in its own little world of illogic and bureaucratic excess; to them a foreign country giving the smallest subsidy to an industry essential to the national interest is illicit state-aid, but to fund a European (especially French) business is simply 'the social market'.
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