Time running out to avert trade war over hush-kits

Date: 13/01/2000

By Renée Cordes

THE European Commission says it has no immediate plans to amend or delay the EU's impending ban on hush-kitted aircraft again, increasing the risk of a fresh trade dispute with the US.

Portuguese officials have warned that unless the Commission comes forward with a new proposal by the end of February, the controversial measure will be implemented this May despite Washington's insistence that the Union must postpone implementation of the ban once more or abandon it altogether.

The Commission is understood to be delaying a decision on its next move until it receives concrete assurances from the US that it will not take retaliatory action against the Union over the issue.

Washington, supported by the American aerospace industry, has threatened to file a complaint with the International Civil Aviation Organisation (ICAO) against the EU, claiming that the measure discriminates against US companies which manufacture hush-kits.

The measure would outlaw aircraft fitted with the hush-kits, which reduce engine noise to meet ICAO rules.

It would prevent airlines registering hush-kitted planes in the Union from 1 May, and from flying any hush-kitted aircraft in EU skies from 2002.

The European Commission says it has no immediate plans to amend or delay the EU's impending ban on hush-kitted aircraft again, increasing the risk of a fresh trade dispute with the US.