PARIS: European planemaker Airbus on Friday made what it described as a final step aimed at halting a transatlantic trade war over billions of dollars of aircraft subsidies.
Airbus said it had agreed to pay higher interest rates on government loans it received from France and Spain to help develop its A350 jet, which entered service in 2015.
It did not disclose the cost of the extra payments, which fall due whenever the plane is delivered abroad.
The government loans are among European measures that the World Trade Organization (WTO) has deemed illegal subsidies as part of a pair of cases also targeting US support for Boeing.
The European Union’s failure to withdraw Airbus subsidies completely led to WTO approval for US sanctions starting from late last year on up to $7.5 billion of European goods ranging from wine to whisky.
Trade groups are bracing for an escalation of the row in the autumn when the EU is expected to win WTO approval to hit back with its own tariffs on US goods in retaliation for subsidies for Boeing, which the Geneva trade body also found illegal.
In a record dispute dating back to 2004, the WTO has ruled the EU and United States awarded subsidies to their respective jetmakers. For the last eight years, the argument has mainly been about whether each side has obeyed those rulings.
“With this final move, Airbus considers itself in complete compliance with all WTO rulings,” Airbus said.
In May, the United States declared itself in full compliance with WTO findings after Washington state abolished aerospace tax breaks that largely benefited Boeing.
Although Airbus is not officially a party to the case, which pits the United States against the EU as well as Britain, France, Germany and Spain, Friday’s statement opens the door for negotiations to end the dispute, a European source said.
Both sides have repeatedly urged negotiations while accusing the other of failing to respond seriously to the invitation.
The Airbus move comes as industries hit by US tariffs including Scotch whisky and Spanish farmers are increasingly complaining about being targeted as a result of the aircraft row and pressuring Airbus and governments to resolve the case.
Airbus said US airlines that had ordered Airbus jets were also among those being hurt by the tariffs.
European officials say they have grounds to quash the US tariffs but that they have been thwarted by a procedural row at the WTO after Washington blocked appointments to its appeals body. US President Donald Trump has been critical of the WTO.
“We are in an impasse and need to get out of it. It is a way to show good faith and open the door to find a solution,” a European industry source said, referring to the loan decision.
The United States Trade Representative and Boeing were not immediately available for comment. A US source said any concessions from Airbus would be welcome but would have to be studied in detail.
Airbus offers ‘final’ concession in A350 aircraft subsidy dispute
https://arab.news/4kbjw
Airbus offers ‘final’ concession in A350 aircraft subsidy dispute
- Airbus agrees to pay higher interest rates on government loans to help develop its A350 jet
Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador
RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.
Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.
He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.
La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh.
Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.
Launching La Fabrique as a space dedicated to artistic creativity
The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally.
He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.
Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.
Saudi Arabia benefiting from French experience in the cultural field
Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.
This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.
He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.
La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.
