EUROPE

E.U. to Hold Off on Airbus Aid

European governments agreed to withhold funding commitments for the new Airbus A350 jet while negotiations continue on their aircraft-subsidies dispute with the United States.

The United States filed a World Trade Organization complaint last year against European government subsidies to France-based Airbus. The European Union countersued, citing U.S. subsidies to Boeing.

TRADE

U.S. to Review Quota Petitions

The U.S. government accepted petitions from the U.S. textile industry to investigate whether quotas should be imposed on 21 categories of clothing and textile imports from China.

The Committee for the Implementation of Textile Agreements accepted petitions covering 16 categories of clothing and textiles including shirts, trousers and underwear. Import growth from China in these categories was limited for 12 months to increases of 7.5 percent, but those limits will expire at the end of this year if not renewed. The committee also accepted petitions from the industry to cover five new categories including wool suits, coats, cheesecloth and polyester filament fabric.

All the cases will be decided by January unless the government asks for more time to complete its investigation.

Brazil Presses Case Against United States

Brazil will seek final World Trade Organization permission to retaliate for illegal U.S. cotton subsidies, Brazil's top trade lawyer said.

In July, Brazil reserved the right to impose $3 billion in annual countermeasures to punish the United States for its aid to cotton farmers, which the WTO has ruled illegal.

Brazil won the original ruling in 2004 after alleging that the United States has kept its place as the world's second-largest cotton grower and largest exporter because the U.S. government paid $12.5 billion in subsidies to U.S. farmers from August 1999 to July 2003.

Compiled from news service reports.