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Europe Daily Bulletin No. 8841
Contents Publication in full By article 16 / 42
GENERAL NEWS / (eu) eu/united states

Washington and Brussels move toward bilateral settlement of Airbus/Boeing affair, outside WTO - Mandelson/Zoellick meeting on Monday

Brussels, 03/12/2004 (Agence Europe) - The EU and the United States both seem ready to continue their talks with a view to resolving their dispute over State aid to Airbus and Boeing at a bilateral level, outside the dispute settlement system of the World Trade Organisation (WTO). On 6 December, just a few days from expiry of the 60-day limit foreseen for seeking to find a friendly solution after US and European complaints had been lodged in Geneva, Boeing considers it will be possible to avoid the setting in place of a formal WTO panel for settling the dispute. "If the European Union is seriously willing to resume bilateral talks, I think there is a fair chance that WTO procedure will be avoided", Boeing Deutschland boss Horst Teltschik told the Handelsblatt on Friday. In his view, the WTO is not an appropriate place for confronting the two rivals. Circles close to US Trade Representative Robert Zoellick seem to support this approach. Washington at any rate hopes to await the beginning of next year before deciding whether or not to call for an WTO panel to be set up, government sources say. "While no one should doubt our resolve to press ahead with this case, we want to give the new Trade Commissioner time to review the issue", they stated. The European Commission also seems in favour of a bilateral settlement that would make it possible to avoid setting up a WTO panel (as a panel could finally result in a verdict to the disadvantage of both sides), but it prefers above all to hear the official stance of the Americans before taking a position. "We await the meeting in Paris with Mr Zoellick next Monday in order to receive clarification about the US position", the spokesperson for Trade Commissioner Peter Mandelson said on Friday. "If the Americans wish to pull back and no longer seek a WTO panel as we have read in the press, then Mr Mandelson would be interested in hearing this directly from Mr Zoellick" during Monday's meeting (see yesterday's EUROPE, p.13). "We hope to hear directly from Mr Zoellick what he wants to do next", she repeated.

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