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Clinton Warns EU of Trade War Over Airbus
US President Bill Clinton warned the European Union (EU) Monday, December 18, that a new trans-Atlantic trade war could erupt over government funding for Airbus' A3XX superjumbo-jet project.
"The president stressed his concern that if that issue is not taken seriously... that could be a difficult issue between the U.S. and EU in trade in the future," White House economic adviser Gene Sperling said after Clinton met with EU leaders, led by French President Jacques Chirac.
Industry sources said that Airbus was scheduled to announce Tuesday the launch of its A3XX project, which will cost 12 billion US dollars.
The Clinton administration has been under increasing pressure from Boeing to challenge European government financing of the A3XX, which is seen as Airbus' biggest threat yet to Boeing in the commercial jet market.
US government officials said they have not ruled out filing a complaint in the World Trade Organization over plans by Germany, Britain and France to help finance up to one-third of the total cost of developing the superjumbo jet.
As expected, the United States and the EU failed to settle nagging disputes over the EU's banana import rules and its ban on beef produced with artificial growth hormones.
The United States retaliated with 116.8 million dollars in trade sanctions last year on a range of EU goods received in the United States.
Sperling said the United States and the EU had agreed to "continue talking," and he held out hope of a breakthrough on beef and bananas in the final weeks of the Clinton administration.
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