EU Trade Commissioner Peter Mandelson said today a step-by-step approach remained the best way to avert a trade war with the United States over state subsidies for aerospace companies.
“It takes two to tango, and if both sides approach the issue in that way, there is a possibility of a negotiated outcome,“ Mr Mandelson said in an interview.
“Everything is on the table, including the elimination of all subsidies on both sides, but it can only be practically achieved if you go step-by-step,” he said.
“For neither Airbus nor Boeing can you achieve everything overnight in one go,” he said.
The United States has balked at an EU proposal to gradually phase out state loans used by Airbus to design new aircraft, calling instead for an immediate end to subsidies.
“At the moment, there isn't an approach at all (to a negotiated settlement) because it's gone to the WTO,” Mr Mandelson said.
“If there is a desire to negotiate instead of litigate, then that would be the time to discuss the terms of a negotiation.“
Complaints filed by the United States and the EU, which accuse each other of supplying unfair subsidies to planemakers, threaten to spark the largest trade war in the 10-year history of the World Trade Organisation (WTO).
The WTO is preparing to appoint panels to review the two cases, which cover more than two decades of state support.