Talks to resolve a dispute between the EU and US over alleged unfair subsidies to plane maker Airbus ended in deadlock on Thursday, raising fears of a trade war between the two blocs.
The US may take the EU to the World Trade Organization (WTO) over the issue, which comes as Airbus is battling for supremacy with its US rival Boeing. Yesterday the EU threatened to counter-sue.
After five hours of talks European commission officials warned mutual litigation could put at serious risk Boeing Co's plans to develop its 7E7 Dreamliner jet. The US manufacturer could be forced to repay billions of dollars in aid if the US lost any WTO case.
The dispute between Airbus and Boeing has been heightened by the US election campaign and the issue of jobs. John Veroneau, general counsel to US trade representative Robert Zoellick, expressed disappointment that the EU had failed to agree on the need to scrap all new subsidies for large civil aircraft. Visibly disgruntled by the European approach, he said the Airbus A380 was a direct competitor to the 7E7 and had received more aid.
"Logically, if anything, there would be much more justification for extra government support for Boeing," he said.
Trade officials from the EU said WTO litigation would damage Boeing since, unlike the A380 which is under construction, the 7E7 is in the development phase and WTO rulings do not apply retrospectively.
The US wants wholesale renegotiation of a 1992 agreement on state aid, drawn up when Airbus enjoyed a smaller market share than it does now. It argues that, now the two rivals have achieved parity in terms of sales, all subsidies should end.
‘UNFRIENDLY’: Changing the nationality listing of Taiwanese residents to ‘China’ goes against EU foreign policy as well as democratic and human rights principles, MOFA said Taiwan yesterday called on Denmark to correct its designation of the nationality of Taiwanese residents as “China” or face retaliatory measures. The Danish government in 2024 changed the nationality of Taiwanese citizens on their residence permits from “Taiwan” to “China.” The decision goes against EU foreign policy and contravenes democratic and human rights principles, Ministry of Foreign Affairs (MOFA) spokesman Hsiao Kuang-wei (蕭光偉) said. Denmark should present a solution acceptable to Taiwan as soon as possible and correct the erroneous designation to preserve the longstanding friendship between the two nations, Hsiao said. The issue could damage Denmark’s image and business reputation in Taiwan,
Taiwan climbed to its highest position in global export rankings in more than three decades last year, buoyed by demand linked to artificial intelligence (AI) that lifted shipments of semiconductors and technology products, Ministry of Finance data released yesterday showed. Taiwan accounted for 2.4 percent of global exports last year, or about US$640 billion, ranking 12th worldwide, the data showed. That was up four places from a year earlier and marked the nation’s best ranking since 1994, the ministry said. Taiwan’s share of global exports rose by 0.5 percentage points from the previous year, the largest increase among major economies, reflecting the nation’s
FIRST TRIAL: Ko’s lawyers sought reduced bail and other concessions, as did other defendants, but the bail judge denied their requests, citing the severity of the sentences Former Taipei mayor Ko Wen-je (柯文哲) was yesterday sentenced to 17 years in prison and had his civil rights suspended for six years over corruption, embezzlement and other charges. Taipei prosecutors in December last year asked the Taipei District Court for a combined 28-year, six-month sentence for the four cases against Ko, who founded the Taiwan People’s Party (TPP). The cases were linked to the Core Pacific City (京華城購物中心) redevelopment project and the mismanagement of political donations. Other defendants convicted on separate charges included Chinese Nationalist Party (KMT) Taipei City Councilor Angela Ying (應曉薇), who was handed a 15-year, six-month sentence; Core Pacific
J-6 REMODEL: The converted drones are part of Beijing’s expanding mix of airpower weapons, including bombers with stand-off missiles and UAV swarms, the report said China has stationed obsolete supersonic fighters converted to attack drones at six air bases close to the Taiwan Strait, a report published this month by the Arlington, Virginia-based Mitchell Institute for Aerospace Studies said. Satellite imagery of the airfields from the institute’s “China Airpower Tracker” shows what appear to be lines of stubby, swept-winged aircraft matching the shape of J-6 fighters that first flew with the Chinese People’s Liberation Army (PLA) Air Force in the 1960s. Since their conversion to drones, the aircraft have been identified at five bases in China’s Fujian Province and one in Guangdong Province, the report said. J.
RSS