Neither side in what is the world's largest trade dispute disclosed the steps taken by the EU, but some trade experts doubted it would succeed in putting an end to the long-running spat between Airbus and its U.S. rival Boeing Co.
"Through this package we address all categories of subsidies, all forms of adverse effects, and all models of Airbus aircraft covered by the WTO rulings," EU trade spokesman John Clancy said in a statement.
The reference to "all models covered by the rulings" is crucial because Boeing is adamant that the EU must not just undo old subsidies but also promise not to give Airbus any more in future. But the two sides may differ about whether the WTO ruling covers future as well as past payments.
Clancy said the EU expected an "equally solid set of compliance actions" from the United States after the WTO issues its final ruling on subsidies to Boeing early next year.
Airbus, part of EADS, said in a statement that only minor changes to European policies were needed to achieve compliance with the ruling by a WTO appeals panel, which six months ago ordered the EU to comply by Dec. 1.
A U.S. industry source, who spoke on condition of anonymity, called the Airbus statement "laughable."
"It's just not the case. Significant changes have to be made to their entire business model. The WTO was very clear. Launch aid, as it has been given, is illegal. That applies to past aircraft, current aircraft and future aircraft," the industry source said.
U.S. Trade Representative Ron Kirk said he needed time to verify that the EU had really scrapped its subsidies.
"We will base our next steps on a careful evaluation of that announcement, and whether it demonstrates that the EU has in fact taken the steps necessary to bring itself into full compliance with the WTO decision," he said in a statement.
"The continued success of the American aerospace industry, and the jobs of hundreds of thousands of Americans who work in this highly competitive sector depend on the ability to compete on a level playing field - the level playing field assured to them by our WTO agreements."
Boeing said Airbus had been receiving "launch aid and other forms of illegal government subsidies" for more than 40 years and said it would work with Kirk in the days ahead to ensure compliance had been achieved.
"We expect Airbus and its government sponsors to demonstrate that the practice of market-distorting launch aid - the most pernicious form of subsidy Airbus was found to have received - has ended," Boeing said.
Airbus Pushes for Deal
Airbus sales chief John Leahy told reporters in Washington that a negotiated settlement that established new transatlantic rules for government support was needed.
"It is very clear that the U.S. is supporting its aeronautical industry and Europe is supporting its aeronautical industry. I think we have to find ways to do it that keep a level playing field ... so let's all sit round a table and come up with a reasonable way of going forward," he said.
While the United States has attacked the EU's launch aid, the EU has complained to the WTO about some U.S. government programs to help Boeing, but that case is still in the appeals stage, with a decision expected around March or April 2012.
U.S. officials contend the two cases show European governments have provided more assistance to Airbus than the United States has to Boeing over the years.
If Washington is not satisfied with the EU compliance plan, it could begin steps at the WTO to impose trade retaliation, known in trade jargon as "suspending concessions."
Kirk said on Thursday that the United States was open to a negotiated settlement that addresses "WTO-inconsistent" subsidies on both sides of the Atlantic.
But "we're determined to ensure this vic
