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Europe Daily Bulletin No. 8922
Contents Publication in full By article 19 / 31
GENERAL NEWS / (eu) eu/united states

EU wants “amicable solution” to Airbus/Boeing dispute, says Mandelson, unmoved by Zoellick's criticism

Brussels, 06/04/2005 (Agence Europe) - Trade Commissioner Peter Mandelson reacted on Wednesday to criticism from the American deputy Secretary of State and former American Trade Representative (USTR) Robert Zoellick on the handling of the Airbus/Boeing affair (EUROPE 8921), stating that he feels that the row over State aid to the two aeroplane builders is an “issue of policy, not personality”. “I've seen much harsher personal attacks in my political career”, he told the press. The position of Mr Zoellick (in charge of the Airbus/Boeing dossier for the time being, until Congress confirms the new USTR, Rob Portman) “is not easy, because the mandate he received from Boeing is to get rid of all Airbus's launch investments, and to do this immediately, without any delay”, Mandelson noted. He feels that Zoellick has “little or no room to compromise”, as Boeing is putting considerable pressure on the White House and Congress. The EU is still hoping for a “negotiated amicable solution”, to be reached outside the WTO dispute settlement bodies, Mandelson stressed. “I continue to believe that this would be far preferable to seeing this case going its way down to the WTO, which is an organisation which has better things to do than sort out the rivalry between two large companies struggling for domination of the global market, which is frankly big enough to accommodate them both”, he said. The proposals the EU has put before the American authorities on a two-phase approach are “sensible, balanced and constructive”, said Mandelson. These proposals were put to Mr Zoellick during a telephone conversation last March which ended up being cut short and led to the suspension of the talks “and since then, there have been at least three contacts through official channels” between the Commission and the American authorities. Mr Mandelson said that it is absolutely untrue that the Commission prefers “spin” to direct and open communication with Washington, as Mr Zoellick claimed on Tuesday. However, the Americans have not yet given their response to the proposals, the Commissioner added. When asked about the “good personal memories” Mr Zoellick talked of with reference to working relations with former Trade Commissioner Pascal Lamy, Mandelson said: “Apparently, Bob [Zoellick] said that he and Pascal Lamy had managed everything absolutely brilliantly. Well, I'll do my best to live up to their high standards”.

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