The article below from NYTimes.com has been sent to you by psa188@xxxxxxxxx /--------- E-mail Sponsored by Fox Searchlight ------------\ I HEART HUCKABEES - OPENING IN SELECT CITIES OCTOBER 1 From David O. Russell, writer and director of THREE KINGS and FLIRTING WITH DISASTER comes an existential comedy starring Dustin Hoffman, Isabelle Hupert, Jude Law, Jason Schwartzman, Lily Tomlin, Mark Wahlberg and Naomi Watts. Watch the trailer now at: http://www.foxsearchlight.com/huckabees/index_nyt.html \----------------------------------------------------------/ U.S. and Europe Fail to Resolve Dispute on Aircraft Subsidies October 1, 2004 By ELIZABETH BECKER WASHINGTON, Sept. 30 - Top trade officials for the United States and the European Union failed on Thursday to resolve their dispute over government subsidies to aircraft manufacturers, especially Airbus and Boeing, inching closer to a clash before the World Trade Organization. Europe's top trade official, Pascal Lamy, said on Thursday through a spokesman that "hopes are dwindling'' for a compromise after discussions went nowhere with the United States trade representative, Robert B. Zoellick. The United States has demanded that Europe end its subsidies for the construction of Airbus, saying the financial support amounts to unfair trading practice. Richard Mills, the spokesman for Mr. Zoellick, said, "We will pursue all options to end these subsidies, including bringing a W.T.O. case." "We will soon make a determination as to next steps,'' Mr. Mills said. At issue is whether the sides can renegotiate a 1992 agreement that outlines support given for aircraft manufacturing. The Europeans want it renewed while the United States has argued that Airbus has become a serious rival of Boeing and is no longer in need of subsidies. In response, Europe has contended that government support for Boeing, especially tax breaks from Washington State, are subsidies, and that airplane manufacturers receive assistance on both sides of the Atlantic. The dispute was injected into the political campaigns when President Bush promised to take the European Union to the W.T.O. if it failed to end the subsidies. For his part, the Democratic candidate, Senator John Kerry, has said Mr. Bush has a lackluster record for bringing winning cases to the global trade group. Privately, European officials said they believed that political considerations were fueling the dispute. Anthony Gooch, the spokesman for the European Commission in the United States, said that Europe was prepared to react immediately if the United States filed suit at the W.T.O. "There should be no doubt that if the U.S. launches a case at the W.T.O. our response will be swift and in kind, with all the consequences that entails,'' Mr. Gooch said in a telephone news conference. That contest could come quickly. It is to the advantage of the United States to remove what the Europeans say they believe is a legal justification for their continued subsidies. Boeing said that it wanted the issue resolved soon and that "it is time for Airbus to accept the financial and marketplace risks that true commercial companies experience.'' A spokesman for Boeing, Dick Dalton, said in an interview that Boeing's position had not changed and that the 1992 agreement had outlived its usefulness. Without that agreement, the European Union would have to justify its direct subsidies of Airbus before the W.T.O. Europe contends that the United States gives government subsidies to its large aircraft manufacturers in the form of military and space contracts, research and development expenditures and tax subsidies. Since these are multibillion-dollar industries, a case before the W.T.O. could lead to expensive penalties. http://www.nytimes.com/2004/10/01/business/worldbusiness/01trade.html?ex=1097662411&ei=1&en=ba57b2ef9c0ea5ce --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://homedelivery.nytimes.com/HDS/SubscriptionT1.do?mode=SubscriptionT1&ExternalMediaCode=W24AF HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2004 The New York Times Company