US trade representative warns EU over Airbus loan

On Monday, U.S. Trade Representative Jamieson Greer warned that a 3 billion euro loan granted to Airbus by the European Investment Bank (EIB) threatens the 2021 tariff truce between the United States and the European Union. Greer characterized the financing, which was announced in June, as a trade-distorting subsidy that grants the European aircraft manufacturer an unfair competitive advantage. The U.S. official expressed frustration, noting that he had hoped such subsidies were a thing of the past, and complained that his office had not received sufficient details regarding the specific terms of the loan.

The dispute reignites a long-standing conflict over government support for major aircraft manufacturers, specifically Airbus and Boeing. The EIB had previously described the funding as unprecedented in its history, with Vice President Ambroise Fayolle stating that the goal was to provide Airbus with the flexibility to undertake long-term research and development investments.

Currently, the U.S. government is demanding a swift resolution to the issue. Officials have called for transparency regarding the loan terms, signaling that the ongoing public support could jeopardize the stability of the trade agreement established three years ago.