A US move to ask the World Trade Organisation for permission to impose trade sanctions on Airbus, after rejecting a European Union plan to eliminate subsidies, is "excessive and premature", France's Trade Minister said on Sunday.
The US said on Friday it would ask the WTO to impose sanctions that could total $7 billion to $10 billion annually, marking a low point in the world's biggest trade dispute, largely centred on European aid for the Airbus A350 aircraft.
"This reaction is excessive and premature," a statement from Trade Minister Pierre Lellouche's office said.
"In any case, the US can neither determine unilaterally if the European Union has put into action the conclusions of the Airbus (compliance) panel, nor is it allowed by the WTO to impose sanctions."
An end to the battle over aircraft subsidies could be some way off and a negotiated settlement may be the most likely outcome. The EU has its own case against US support for Boeing, and resolving that will be part of the final mix.
But US officials exploited a tactical advantage derived from the fact the WTO has already issued a final ruling in the US case against Airbus subsidies, while the EU case against Boeing subsidies is pending.
"We are very confident with regard to the outcome of this (EU) case for which the conclusions should be released soon," Lellouche said.
The transatlantic aircraft dispute is the world's largest trade fight, affecting more than 100,000 jobs in an airplane market worth more than $2 trillion.