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-French cooperation to localize veterinary vaccine manufacturing
RIYADH: In the presence of sector leaders, the National Livestock and Fisheries Development Program signed a memorandum of understanding with French company Ceva under the patronage of Minister of Environment, Water and Agriculture Abdulrahman bin Abdulmohsen Al-Fadhli, who also chairs the program’s board.
The agreement aims to localize vaccine manufacturing, transfer technology and technical expertise, and expand the industrial and commercial production of veterinary vaccines across the Kingdom.
According to the MoU, the two parties will work to achieve high efficiency in mass production scale-up and establish a clear path for sustainable commercial operation that meets the needs of the local and national market, as well as strengthen the biosecurity and food security system.
The MoU also includes the development and modernization of messenger RNA vaccine technologies, along with joint research and development of a Middle East Respiratory Syndrome vaccine for camels. This involves designing, evaluating, and developing vaccines specifically tailored to combat the virus.
The agreement also covers the development of a rabies vaccine and related solutions, as well as supporting national efforts to control the disease through vaccine provision, capacity building, and the implementation of integrated prevention strategies.
The collaboration between the program and Ceva aims to meet the needs of the poultry vaccine market in the Kingdom, currently estimated at around SR750 million ($199 million).
The company will work to cover approximately 30 percent of this market with an initial investment of around SR250 million.
With continued government support for poultry projects and increased production in the sector, the market is expected to grow at a rate exceeding 10 percent annually, reaching approximately SR1.25 billion by 2030.
The addition of the world’s leading poultry vaccine manufacturer to Biotech Park highlights the program’s key role in developing new industries within the livestock and fisheries sector.
It also highlights the program’s commitment to building international partnerships with global companies, organizations, research centers, and universities to support advanced biotechnology industries and attract high-quality investments. It also seeks to create new economic sectors based on biotechnology, enhance veterinary health security, and support the sustainable economic development of the livestock sector, as well as empower national and emerging companies and provide advanced research and industrial infrastructure.
This will solidify the Kingdom’s position as a global hub for biotechnology industries and the development of national capabilities.
Ceva is the first international partner to join Biotech Park, the future veterinary biotechnology city launched by the program in Dhurma Governorate. The city is the world’s first specialized and fully integrated hub for veterinary biotechnology, serving as a benchmark for sector development and a platform supporting markets across the Kingdom, the Gulf, the Middle East, Africa and beyond.
The signing of Ceva is a significant step, given its position as the world’s leading manufacturer of poultry vaccines and medicines, and one of the most prominent international companies in the field of biotechnology.
The MoU aims to localize the veterinary vaccine industry, ensuring its compatibility with the strains of poultry diseases prevalent in Saudi Arabia. This includes the transfer of technology and technical expertise from Ceva, along with the implementation of specialized training programs to guarantee that manufacturing facilities comply with international Good Manufacturing Practice standards.
