USTR Greer tells EU that loan to Airbus threatens trade truce on aircraft financing

The US Trade Representative, Jamieson Greer, expressed concern to the European Union on Monday about the lack of transparency surrounding the US$3.4 billion loan given to Airbus. Greer stated that the absence of information on this substantial loan threatens the delicate trade truce between the United States and Europe, particularly in the area of financing for large civil aircraft (LCA) projects.

Boeing had previously requested that the US government advocate for transparency on the loan, which was made by the European Investment Bank (EIB) in June. This situation is causing uncertainty in transatlantic trade within the aerospace sector, as it may lead to market-driven production in aerospace being jeopardized and potentially violate the terms of a hard-fought Limited Capital Access (LCA) agreement.

Airbus representatives clarified that the EIB loan is a typical corporate financing facility, similar to others previously granted to the company. They are actively cooperating with relevant authorities to provide more details about the loan. The loan was also intended to diversify Airbus' funding sources, which is crucial to manage the complexity of a large-scale global production system and supply chain.