The agreement between the U.S. and the EU to use the World Trade Organisation’s definition of subsidies caused a critical argument connecting the EU’s launch aid for Airbus’s projects of A350 and A 380. The U.S. accuses the EU of violation of the WTO’s rules, that creates uncompetitive and unfaithful conditions for other manufacturers like Boeing. The EU, on its part, consistently argues that Boeing benefits from state-level tax breaks. Talks between the two sides over ending the subsidies broke down in a deadlock by March 18.

The fact that Airbus is developing at the same time two big projects – the A380 aircraft, to be the world’s biggest airliner by 2006, and the A350 to challenge Boeing’s 787 by 2008 – brings no calm to the conflict.

Airbus and Boeing themselves try to avoid involvement in the dispute. ``This whole issue is a government-to-government issue, and we look to our governments to resolve it,’’ said Guy Hicks, a spokesman for Munich- and Paris-based European Aeronautic.

Previously, the U.S. and the EU tried to settle their differences outside the WTO in order to avoid litigation and preserve profitable trade relationship that brings $400 billion a year. Airbus and Boeing are only two points on a large list of traders and manufacturers. Considering the U.S. and EU common profit, it is worthwhile coming to some compromise.