BRUSSELS, Belgium -Digging in for a new trade war with Washington, the European Union filed a counter complaint yesterday at the World Trade Organization, claiming that U.S.-based Boeing Co. receives illegal government aid.
EU Trade Commissioner Peter Mandelson said he had little choice but to retaliate because the United States decided to close the door on reaching an amicable solution to the standoff between Boeing and France-based Airbus.
The path of negotiations has been closed
Mandelson said, laying the blame for the new trade war at the feet of the Americans after the Bush administration decided late Monday to abandon negotiations that began in January and take the EU to a legal panel at the WTO.
The WTO confirmed yesterday that it had received complaints from both the United States and EU.
Mandelson said the WTO action could only rupture fragile EU-U.S. ties, adding that taking the talks to the WTO would accomplish nothing.
America's decision will I fear spark the biggest
most difficult and costly legal dispute in the WTO's (10-year) history
he said, adding that it would be manifestly expensive and (involve) quite destructive litigation.
Analysts said any WTO-imposed cuts in aid to the two companies could result in higher ticket prices for travelers.
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This file photo dated Sept.1, 2004 shows newly appointed French Interior Minister Nicolas Sarkozy, left, talkng with France's new Premier Dominique de Villepin in Paris. Sarkozy and Dominique de Villepin were appointed to their new jobs Tuesday in the aft
