Lighthizer's proposal, however, is unlikely to win support from the European Union, which appears set to ask the WTO at an October 26 meeting to endorse $4 billion in European Union tariffs on US goods. 2 he made it clear that he sees doubling and says one has at least 50% for height.
"The World Trade Organisation authorises the European Union to overtax USA imports by $4 billion [per year]".
The European Union and the USA exchanged tariff threats this week after the World Trade Organization, in its ruling over illegal state aid America provided to Boeing Co., gave the EU permission to impose duties on $4 billion worth of US goods.
The loans stand at the centre of a 16-year-old dispute that has bedevilled trade relations and spread to industries from luxury goods to agriculture as the two sides seek to punish aircraft subsidies with tariffs.
But he warned in the absence of "constructive" U.S. participation even after the elections, the European Union will press ahead with tariffs. The USTR's office and the European Commission, the EU's executive body, did not respond immediately to requests for comment.
But one Brussels insider described the United States proposal as "insulting" and said it could accelerate the tariff war.
"All our sectors have been threatened or already hit by punitive tariffs for months, as part of a trade dispute over which we have no control and which is not related to us".
That would assume a higher risk than Airbus partner nations - Britain, France, Germany and Spain - have traditionally priced into the loans and reflects a speculative type of investment.
Meanwhile, the EU-which has drawn up a list of American products that will face tariffs-will likely hold fire until after the US presidential election on November 3, according to three officials familiar with the bloc's thinking. The EU in response accused the U.S. of providing subsidies to Boeing and filed complaints with the WTO.
Lighthizer previously said he's seeking two things: a pledge from Europe to end its aircraft subsidies and for Airbus to repay the subsidies it received from France, Germany, Spain and the United Kingdom.
Proceedings officially began in 2005, when the European Union requested a conference with the U.S. regarding tariff measures affecting the trade of large civil aircrafts.
"The US is determined to find a resolution to this dispute that addresses the massive subsidies European governments have provided to Airbus and the harm to US aerospace workers and businesses", Lighthizer said.
Currently Airbus repays government loans only when its sales exceed a certain threshold, while loans for weak-selling planes such as the A380 superjumbo can be waived partly or fully.