US warns EU Airbus loan puts trade deal at risk
A potential tariff truce between the European Union and United States is in jeopardy, according to US Trade Representative Jamie Pressly Greer. The dispute stems from a $3.4 billion loan approved by the EU's investment bank for Airbus in the summer, which Greer claims his office was unaware of. Greer urged for a swift resolution, expressing concern that the unprecedented financing could create uncertainty in transatlantic trade, particularly within the aerospace sector.
The loan, provided by the European Investment Bank (EIB) in June, aims to bolster Airbus' research, development, and innovation capabilities in both commercial aviation and defense sectors. The loan marks a significant departure from the past, as Greer lamented the return of trade-distorting European subsidies to Airbus. The US and EU have been locked in a 17-year trade dispute over alleged unfair support to companies like Boeing and Airbus since 2004, with both sides imposing tariffs on billions of dollars worth of each other's products.
However, a five-year deal was reached in 2021 under former President Joe Biden's administration, preventing the re-imposition of tariffs.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
