US warns EU loan to Airbus threatens aircraft financing trade truce
US trade representative Jamieson Greer also expressed frustration after his office received no details about the US$3.4 billion loan issued in June.
WASHINGTON: On Monday, US Trade Representative Jamieson Greer cautioned the European Union that a massive loan from the European Investment Bank (EIB) to Airbus poses a threat to a crucial transatlantic trade agreement. Greer expressed frustration that his office had not received any information regarding the $3.4 billion loan extended to Airbus by the EIB in June.
The situation has introduced considerable uncertainty into the transatlantic trade of large civil aircraft (LCA) projects, according to Greer. Resolving this matter promptly is crucial to maintaining market-driven production in the aerospace sector and adhering to the terms of their agreement on Large Civil Aircraft (LCA) financing.
The US and EU reached a 17-year truce in 2021 to avoid imposing tariffs on $11.5 billion worth of trade, which expired in July. This loan could be viewed as a form of subsidy for Airbus by the World Trade Organization, as has been found previously in cases like this. The European Investment Bank, in its statement, affirmed that the loan is a standard financial transaction, and the Airbus CFO stated that the loan was obtained entirely at market rates.
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