Mandelson: US taking "one-sided view"

EU trade commissioner Peter Mandelson has criticised the Bush administration's approach to subsidies for Boeing and Airbus.

The Blair ally said that the US was taking a "one-sided view" on the issue.

His comments came as a self-imposed deadline for the two sides to reach agreement expired.

Both trade blocs have fallen out over the US's unhappiness over launch aid given to Airbus to kick-start is plans for new aircraft.

In return, the EU has said Boeing receives state aid from the US in the form of local tax relief and via military contracts.

The Bush administration has threatened to take the dispute to the World Trade Organisation, where many observers think both sides would be deemed in breach of the rules.

Mandelson's comments threaten to stoke up the row.

"The Americans have a very one-sided view over subsidies," he told BBC Radio 4's Today programme.

"They attack subsidy, as they call it, for Airbus, but give Boeing a free pass.

"The fact is that both companies receive financial support from government sources - in fact, Boeing more so and from more sources.

"In my view, this support can and should be reduced and disciplined but if that's going to happen it should be done equally on both sides."

The Brussels trade chief added that the dispute was about market share rather than subsidies.

"Boeing's action against Airbus is motivated by a desire to cut down or restrain what is by any measure a high-performing, high-technology, highly successful European product," he said.