EU wants to negotiate solution with U.S. on aircraft subsidy row, Commission says

FILE PHOTO: A logo of Airbus is seen at the entrance of its factory in Blagnac near Toulouse, France July 2, 2020. REUTERS/Benoit Tessier

BRUSSELS (Reuters) - The European Union’s executive on Thursday acknowledged the United States’ decision not to exacerbate a 16-year-old dispute over aircraft subsidies by imposing fresh tariffs, and said it wanted to negotiate a solution to end the row.

“The Commission acknowledges the decision of the US not to exacerbate the ongoing aircraft dispute by increasing tariffs on European products,” a Commission spokesperson said, adding that the coronavirus pandemic had severely hit the aviation sector, making it even more urgent that the dispute is resolved.

Both sides should build on this decision and intensify their efforts to find a negotiated solution, the spokesperson said.

The U.S. government on Wednesday said it would maintain 15% tariffs on Airbus AIR.PA aircraft and 25% tariffs on other European goods.

Reporting by Kate Abnett, Gabriela Baczynska