US Trade Representative Jamieson Greer told the European Union on Monday that a lack of information about its record-breaking loan to Airbus threatens a delicate transatlantic trade truce, including on financing large civil aircraft projects, Reuters reported.
Source: Reuters via SRN News
In a statement, Greer expressed frustration that despite ongoing requests, his office has received no details about the $3.4 billion loan made in June from the European Investment Bank, the EU's official lending arm, Reuters said. Yaani: $3.4 billion is about 340 crore dollars, and the loan is described as the bank's record corporate financing.
US planemaker Boeing had asked the US government in July to press for transparency on the loan, which came amid speculation that Airbus would use the funds to develop a new aircraft model, Reuters reported. France 24 also reported Greer's warning that the loan could jeopardise the tariff truce between Washington and Brussels.
Source: France 24 via AeroHaber
Greer said: "This situation injects substantial uncertainty into transatlantic trade in the aerospace sector. 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."
Source: Reuters via SRN News
An Airbus spokesman said the EIB loan "is a standard corporate financing facility, similar to commercially-available loans we've signed in the past," and that Airbus was actively engaging with the relevant authorities and happy to share more information with governments, Reuters reported. Airbus Chief Financial Officer Thomas Toepfer also told reporters in London in July that the loan had been taken out "completely at market level."
The European Investment Bank said the financing — €3 billion, about $3.4 billion — is intended to strengthen Airbus's ability to invest in long-term research, development and innovation in commercial aviation, security and defence. An initial €1 billion loan was signed as part of the envelope, according to reporting on the EIB announcement.
Source: Brussels Morning
The US and EU fought a protracted 17-year battle over alleged aircraft subsidies at the World Trade Organization, with both sides winning partial victories before agreeing to a five-year truce in 2021 that forestalled mutual tariffs on some $11.5 billion worth of trade, Reuters said. Yaani: $11.5 billion is about 1,150 crore dollars of trade that the truce kept tariff-free.