[Paul Ross]

The deal was done long after Reagan during President George HW Bush's last year. Since 1992 direct and indirect government support to the aircraft industry in the United States and the European Union has been regulated by the bilateral EU-US Agreement on Trade in Large Civil Aircraft.

George W. Bush was beginning to undo some of the damaging self-inflicted wounds that the trade agreement imposed unilaterally against the U.S. The US purported to unilaterally withdraw from the 1992 bilateral EC-US Agreement on Trade in Large Civil Aircraft in October 2004. But of course, knowing it had a huge winning trade dvantage it would not do well without, the EU has contested even our action in withdrawing from that agreement...and made that an WTO litigated dispute which is pending.

Unfortunately the vigor of the President's defense of his decision is waning, likely with his decision to give the Air Tanker contract to EADs. He must have thought that could pave over the dispute...and make nice with whomever he is deeming expedient at the moment.

More payola to a corrupt entity and countries which don't pay for their own defense, but count our defending us...and them....as a trade subsidy.

[1rudeboy]

I'm wondering what Boeing was forced to give up, and by who? Also, there is not a small amount of cogitive dissonace in using the terms "trade agreement" and "imposed unilaterally. The 1992 Agreement was an agreement to phase-out subsidies. The U.S. is unsatisfied will the pace. The U.S. has sued Airbus.

The last time I checked the U.S. was trying to negotiate something to replace the 1992 Agreement. I don't know if those negotiations are on hold, or if all the other disputes have been rolled into the U.S. case against Airbus.