Washington, Oct 27 — The United States has warned that a record-breaking European investment loan to aircraft manufacturer Airbus has injected fresh uncertainty into transatlantic trade, raising questions about the future of an agreement under which Washington and Brussels suspended punitive tariffs in their long-running aircraft subsidy dispute.
US Trade Representative Jamieson Greer on Monday expressed concern over the European Investment Bank's decision to extend what he described as its largest-ever loan to Airbus, saying Washington had yet to receive details of the financing despite repeated requests.
The loan, intended to benefit Airbus projects in France, Germany and Spain, has revived a dispute over government support for aircraft manufacturers that the United States and European Union had sought to contain through an agreement suspending retaliatory duties.
“I had sincerely hoped that trade-distorting European subsidies to Airbus were a thing of the past,” Greer said in a statement issued by the Office of the United States Trade Representative (USTR).
The American trade official accused France, Germany and Spain of providing longstanding support to Airbus that disadvantaged US aerospace companies and workers.
“For decades, France, Germany, and Spain have aggressively supported Airbus, their national champion aircraft manufacturer, to gain an unfair advantage over US aerospace workers and businesses,” he said.
Greer's intervention places renewed attention on the terms of the transatlantic aircraft agreement, particularly provisions requiring financing for large civil aircraft manufacturers to be provided on commercial terms.
The United States has not announced new tariffs or formally declared that the European Union violated the agreement. However, Greer's remarks signal that Washington is questioning whether the financing arrangement is consistent with the commitments made by both sides.
According to the USTR, the European Investment Bank approved the loan during the summer, shortly after the European Union extended the suspension of duties associated with the aircraft dispute.
The US trade representative said the timing of the decision and the lack of information about the loan had raised concerns in Washington.
“Despite ongoing requests, USTR still has no details about this loan,” Greer said.
He added that the development had created substantial uncertainty for transatlantic aerospace trade and called for the matter to be resolved quickly.
“It is important this situation is resolved as soon as possible to ensure market-driven production in the aerospace sector and to avoid violation of the terms of our hard-won LCA deal,” he said.
The latest disagreement comes against the backdrop of one of the longest-running trade disputes between the United States and Europe, involving competing allegations of government subsidies to Boeing and Airbus.
The World Trade Organization authorised retaliatory measures in the aircraft disputes after findings concerning support provided to both manufacturers. Washington and Brussels subsequently agreed in 2021 to suspend related tariffs for five years while pursuing a negotiated framework for large civil aircraft financing.
The arrangement was intended to reduce trade friction between the two economies while establishing principles governing government support for aircraft production. The renewed US concerns highlight the importance of those financing commitments to the durability of the agreement.