GENEVA, July 27: Airbus and Boeing, the world’s two largest plane makers, said on Friday they were prepared for talks between themselves on subsidy disputes filed before the WTO more than two years ago.

“It is a pity that Boeing chose the path of litigation. We are ready to negotiate at any time, but it takes two to tango,” Airbus’ director of European affairs Geoffrey Shuman told reporters in Geneva.

He spoke following meetings of a WTO panel set up to hear US charges of European financial aide to Airbus that could in principle lead to a ruling in December.

“The US say they are ready to negotiate but they tell us we first have to unilaterally give up reimbursable launch investment without any similar concession on their sides,” he added.

“We could not support the EU entering a negotiation on that basis.” Airbus and Boeing launched reciprocal complaints at the WTO over subsidies to the two companies in October 2004.

Previously, both parties had been bound by a 1992 treaty limiting subsidies to each of them.

According to Boeing vice president Ted Austell: “The US has continued to communicate its willingness to engage in constructive negotiations when and should that time present itself. It has not yet.”

A second body looking into EU complaints against alleged US aid to Boeing is to begin its work in late September and in theory complete it in early 2008.

Washington is targeting European government loans to Airbus for the launch of new models, while Brussels objects to assistance to Boeing from US state governments, the US Defence Department and the space agency NASA.

Commercial law specialists expect both companies to be found in violation of subsidy regulations and say that regardless of any future WTO rulings, Airbus and Boeing will have to renegotiate a bilateral agreement on future state aid.—AFP