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WASHINGTON -- The Bush administration said Monday it would bring a trade case alleging the European Union is providing illegal subsidies to Airbus, the major competitor to U.S.-based Boeing Co. U.S. Trade Representative Rob Portman said the administration had decided to proceed with a case before the World Trade Organization in light of preparations by member states of the European Union to commit $1.7 billion in new launch aid to Airbus. "The EU's insistence on moving forward with new launch aid is forcing our hand," Portman said in a statement announcing the administration's decision. Launch aid is the support provided...

The United States says it will reactivate a World Trade Organization (WTO) case against European Union subsidies for aircraft maker Airbus. US trade officials said the decision followed the failure of latest efforts to reach a negotiated settlement. Earlier on Monday, Europe made a new offer to the US to cut state aid to help resolve the long-running row. Trade commissioner Peter Mandelson proposed that both sides cut part of their subsidies to Airbus and Boeing. Mr Mandelson suggested both sides then discuss further aid cuts later. According to one report, Brussels has offered to cut aid for the Airbus...

BRUSSELS (Reuters) - The United States accused the European Union on Monday of "spinning to the press" by making public a new proposal to end a dispute over subsidies enjoyed by aviation rivals Airbus (EAD.PA) and Boeing (NYSE:BA - news). "We had an agreement with the Europeans that each side would quietly reflect on the Friday call over the weekend," U.S. Trade Representative spokesman Rich Mills said in a statement sent to Reuters in Brussels. "We're extremely disappointed that they've begun spinning to the press -- this does not help our relations or the management of the U.S.-EU relationship." Earlier...

BRUSSELS (Reuters) - The European Union has offered to cut by 30 percent loans likely to be provided for Airbus's new A350 airliner in a bid to avert a huge legal battle with the United States, which is defending its aviation giant, Boeing. An EU official said on Monday the bloc's trade chief, Peter Mandelson, had also offered to discuss the terms of any "launch investment" loans made by European governments to satisfy Washington of their commercial basis. Mandelson's move is aimed at rescuing negotiations on how to eliminate subsidies enjoyed by the aircraft manufacturing rivals -- which collapsed amid...

Airbus is reported to have asked Britain for £379m worth of state aid for its A350 project. According to The Sunday Times, it has urged ministers to come up with the cash or see valuable work lost to Germany or Spain. The sum involved is far greater than that demanded of other member countries. But if, as expected, the Government accedes to the plane maker's request, it could trigger a Transatlantic trade war. Officials in Washington have warned that the approval of launch aid for the new aircraft would lead to immediate litigation. They said the issue would be taken...

The United States has warned that it is going to proceed “promptly” with a World Trade Organization (WTO) subsidy case against the European Union (EU) unless the Europeans change their position on aid for the development of new Airbus aircraft. Testifying May 25 before a House of Representatives Transportation and Infrastructure subcommittee, Deputy U.S. Trade Representative Peter Allgeier said that a negotiated agreement on ending so-called launch aid and other trade-distorting aircraft subsidies would be preferable to litigation. But he added that the Bush administration is “fully prepared” to move forward with the 2004 WTO case and believes it has...