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US Trade Representative Jamieson Greer says Washington has not received details of the European Investment Bank’s record Airbus loan, raising fresh questions over aircraft subsidies and transatlantic trade ties
The United States has warned the European Union that a $3.4 billion loan to Airbus could threaten a fragile transatlantic trade truce, reviving concerns over government support for the aircraft industry and the long-running rivalry between Airbus and Boeing.
US Trade Representative Jamieson Greer said on Monday that his office had repeatedly sought details about the financing, provided in June by the European Investment Bank (EIB), the EU’s official lending arm, but had not received the information it requested. The dispute centres on whether the loan amounts to a subsidy for Airbus and whether its terms comply with an agreement governing support for large civil aircraft (LCA) projects.
“This situation injects substantial uncertainty into transatlantic trade in the aerospace sector,” Greer said in a statement. He called for the issue to be resolved quickly to protect what he described as a “hard-won LCA deal”.
“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 added.
The warning comes as Washington and Brussels attempt to maintain a broader trade agreement that eased tensions over tariffs. A fresh dispute over aircraft financing could complicate those efforts and put renewed scrutiny on the rules governing government support for the two major aircraft manufacturers.
More from BusinessWhy the Airbus loan has raised concerns
The $3.4 billion loan was extended to Airbus by the EIB in June. The financing drew attention in Washington amid speculation that Airbus could use the funds to develop a new aircraft model.
Boeing, the US aircraft manufacturer and Airbus’ principal rival in the commercial aviation market, asked the US government in July to press the European Union for greater transparency over the loan.
The central question for the US Trade Representative’s office is whether the financing constitutes a subsidy under the rules governing the aircraft industry. The World Trade Organization has previously found that certain loans to aircraft manufacturers can qualify as subsidies, making the terms of the latest financing a matter of concern for Washington.
However, the US has not established that the EIB loan violates the existing agreement. The dispute remains focused on obtaining details of the financing and determining whether its terms comply with the applicable rules.
The EIB defended the loan in July, saying its financing activities support thousands of companies each year and that Airbus had not received unusual treatment.
“This is a normal loan, carrying interest, part of the EIB’s overall financing activity,” an EIB spokesperson said.
Airbus Chief Financial Officer Thomas Toepfer also told reporters in London in July that the loan had been taken out “completely at market level”.
