Saturday, March 31, 2012

Special relationship?....Only When it Suits: U.S. threatens Britain with £6bn trade sanctions as legal battle over aircraft subsidies comes to a head

Britain could be hit with more than £6billion of trade sanctions from the U.S. in retaliation for actions also committed by Germany and France.

The drastic measures – which could cripple Britain’s export trade with America – are the climax of a mammoth eight-year legal battle between the EU and the U.S.

Both have taken legal action against each other over subsidies given to two major aircraft companies, Boeing and Airbus.

Both groups have been supported by billions of pounds of state-backed funding since they were created in order to help them develop new planes.

Germany, France and the UK have paid £11billion to Airbus in subsidies, it is alleged.

An eight-year legal battle has been fought at the World Trade Organisation over the legality of the payments.

Now America has asked for permission to slap billions of pounds of sanctions on exports coming from Europe – including British produce. Read More