USTR - March 18, 2005 Statement from USTR Spokesman Richard Mills on the Status of U.S.-EU LCA Subsidy/Litigation Talks
                 
The Office of the United States Trade Representative

March 18, 2005 Statement from USTR Spokesman Richard Mills on the Status of U.S.-EU LCA Subsidy/Litigation Talks
Contact: Richard Mills or Neena Moorjani, 202-395-3230 03/18/2005


"Despite our best efforts, it’s clear that the EU is unwilling to eliminate launch aid subsidies.

"Although on January 11, the EU agreed to a negotiating structure for eliminating large civil aircraft (LCA) subsidies, over the last two months, they’ve been backtracking and seeking to change the terms of that agreement.

"It’s now demonstrated conclusively that they’re not prepared to follow through on that agreement.

"The United States is willing to hold to the standstill terms of the January 11 agreement that precluded further subsidies. But if the EU either breaks or refuses to extend the terms, we will return to litigation to eliminate LCA subsidies."