Trade War?

The trade disputes between the U.S. and the E.U. over illegal subsidies to the aircraft-making industry continued today with the E.U. appealing to the W.T.O. for permission to impose $12 billion in annual trade sanctions against the U.S. for illegal Boeing subsidies. They claim that this steep punishment would make up for the unfair advantage that the U.S. has enjoyed the past several years. This latest step in the seven-year dispute leaves many, including the NY Times, wondering if we are headed for "an open trans-Atlantic trade war." In fact, the U.S. has said that it could impose up to $10 billion in trade sanctions against the E.U. for their (illegal) subsidies to Airbus. While the individual governments are ready to impose heavy sanctions, it seems that both Boeing and Airbus would like to negotiate. Hopefully this sentiment will prevail. We will have to continue to watch this story... The E.U.'s request is expected to be formally submitted to the W.T.O. on October 23.