The United States and the European Union should be able to reach some agreement to put new disciplines on government support for civilian aircraft manufacturers Airbus and Boeing, a top European Union official said on Thursday.
"It should be possible because I think we share the same view that these two companies have to compete on a level field," EU Trade Commissioner Pascal Lamy told Reuters in a brief interview after he met with Senate Finance Committee Chairman Charles Grassley, an Iowa Republican.
"Now, of course, it all depends on what you call a level playing field and that's the nature of the issue," Lamy said.
The United States has threatened to bring a World Trade Organisation complaint unless European governments stop providing loans to help Airbus develop new aircraft. A 1992 agreement allows European governments to finance 33 percent of the estimated cost of Airbus development projects.
Boeing says Airbus has received $15 billion in "launch aid" since 1967 and estimate that has conferred $40 billion in subsidy benefits to the aircraft manufacturer because of generous repayment terms
Airbus is co-owned by European aerospace company EADS and Britain's BAE Systems.
EU officials insist that any new agreement must also curb government support for Boeing, which they estimate has totalled around $18 billion since 1992.
Lamy said he would discuss the aircraft issue with US Trade Representative Robert Zoellick when two meet later on Thursday. Both Lamy and Zoellick also will give closed-door speeches to the Council on Foreign Relations.
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