Key facts
- US warned EU that a $3.4 billion loan to Airbus threatens a transatlantic trade truce.
- The loan was made in June from the European Investment Bank.
- US seeks transparency on the loan, fearing it could be an illegal subsidy.
- The US and EU agreed to a five-year truce on aircraft subsidies in 2021.
- The truce was extended in July.
US Trade Representative Jamieson Greer warned the European Union on Monday that a record-breaking $3.4 billion loan to Airbus from the European Investment Bank threatens a delicate transatlantic trade truce, including a deal on financing large civil aircraft projects. Greer expressed frustration that despite 'ongoing requests,' his office has received no details about the June loan, which came amid speculation that Airbus would use the funds to develop a new aircraft model. The US and EU fought a protracted 17-year battle over alleged aircraft subsidies at the World Trade Organization before agreeing to a five-year truce in 2021 that forestalled mutual tariffs on some $11.5 billion worth of trade. The truce was extended in July. The EIB said the loan was normal and carried interest, while Airbus's CFO said it was taken out at market level.