The United States is being urged by the European Union to not to immediately think or plan any sanctions on trade but instead look out for an agreement on the subsidies given to companies in the aircraft industry by both the parties. However the EU Trade Chief Cecilia Malmstrom said on Monday that there has so far been no signal from Washington that it is interested to hold any talks on the issue.

A request by the United States with the World Trade Organization for the imposing of tariffs on European goods was approved by the world body said recent reports quoting sources with that had knowledge of the matter. That was a part of a long drawn 15 year old dispute over the issue of subsidies given by the governments to the US plane maker Boeing and its European rival Airbus.

In the week starting September 30, it is being expected that the scope of the sanctions would be announced by the Geneva-based body. Analysts and market watchers also expect that the WTO would also allow the European Union to take action against the imports from the United States starting early next year.

“Our view is that we have enough tariffs in the world as it is… The U.S. president likes to make deals so we have offered to try to make a deal to find a negotiated solution,” EU Trade Commissioner Malmstrom told a briefing.

A proposal to the United States to deliberate the issues that have cropped up because of the cases was made in July by the EU which included aid for program development, repayable launch investment and tax subsidies.

“So far, unfortunately, the U.S. has not said that they are willing to negotiate, at least not until they have imposed their tariffs, which they are likely to do quite soon,” Malmstrom said.

If the EU and the US could come to an agreement on the issue of subsidy to the aircraft industry, it could become a model or a framework to follow for others who desire to create a level playing field in trade and business, said the EU trade chief.

“We also know other big players in the world, such as Russia and China but also others, are also subsidizing their civil aircraft industry,” she said.

A list of products and goods imported into the EU from the US – which includes aircraft, chemicals and food, that has a total worth of $20 billion, has been drawn up by the European Union and has been kept in readiness to be implemented following a likely decision by the WTO being delivered in the early part of next year over the subsidy case of Boeing.

However, it is hoped that the EU will not be required ot make use of the list of goods that it has prepared, Malmstrom and said.

(Adapted from Money.USNews.com)

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