The European Union accused the United States on Friday of violating a transatlantic agreement on subsidies to aircraft makers and demanded consultations before Washington gives any aid to Boeing's 7E7 project.
In a letter released in Brussels, the European Commission said it rejected a unilateral US move to terminate the pact since it was not backed by proper reasons, and the EU considered the agreement to be in force.
"We have... the feeling that this may be a way for them to escape from the disciplines in the 1992 agreement," spokeswoman Arancha Gonzalez told a news conference. "We also request that we hold consultations before they make any definitive decision as to the provision of subsidies to the Boeing 7E7."
The latest escalation came after Washington and Brussels filed reciprocal complaints against each other's public subsidies to Airbus and Boeing with the World Trade Organization on Wednesday.
The aircraft dispute has raised transatlantic tensions over a raft of trade issues.
"We don't think they have provided grounds for terminating the agreement and therefore we don't think it's a substantiated termination," Gonzalez said. "The EU considers the abrogation invalid and consequently the agreement is still in force."
A senior US trade official said on Thursday the timing of the challenge had more to do with the prospect of European government subsidies for the launch of a new Airbus plane, the A350, which would rival Boeing's "Dreamliner" 7E7.
The Commission said Washington had provided no evidence of EU non-compliance with the 1992 pact and made only "groundless and unsubstantiated general allegations".
The EU executive also said it had no knowledge about Italian support for Boeing's 7E7 project.
