GREER WARNS AIRBUS LOAN THREATENS US-EU TARIFF TRUCE

US Trade Representative Jamieson Greer warned on Monday that a European Investment Bank loan to Airbus could put a tariff truce between the United States and European Union at risk. Greer said his office had received “no details about this loan” since the bank announced the financing in June. He urged the EU to resolve the matter as soon as possible. “I had sincerely hoped that trade-distorting European subsidies to Airbus were a thing of the past,” he said in a statement.

The European Investment Bank said in June that it would provide Airbus with a record €3 billion ($3.4 billion) for research and development. EIB vice-president Ambroise Fayolle said at the time that the financing would give Airbus flexibility to invest in long-term research and innovation. He said those investments would cover commercial aviation, security and defence. The United States and EU have disputed support for aircraft manufacturers, including Boeing and Airbus, since 2004. Each side has accused the other of providing support that breaches international trade agreements.

The dispute led both sides to impose tariffs on billions of dollars’ worth of each other’s products. In 2021, they agreed a five-year arrangement under former US president Joe Biden’s administration. Neither side has reimposed those tariffs since that agreement. Greer said the Airbus financing “injects substantial uncertainty into transatlantic trade in the aerospace sector”.