The United States will resume a trade case to the World Trade Organization (WTO) over the European Union's subsidies to Airbus, the major rival of US aircraft maker Boeing, US Trade Representative Rob Portman announced Monday.

"The United States announced today that it will file a request for the establishment of a World Trade Organization dispute settlement panel to resolve the dispute. The panel request will be filed on Tuesday, May 31," Portman said in a statement.

The decision came after members states of the European Union ( EU) were launching a new aid of 1.7 billion US dollars to Airbus, according to the statement.

"The EU's insistence on moving forward with new launch aid is forcing our hand," said Portman.

Meanwhile, Portman said that "we continue to prefer a negotiated settlement and we would rather not have to go back to the WTO." "By requesting the panel, the United States is providing time for the EU to reconsider its plans to provide new subsidies."

"We still believe that a bilateral negotiated solution is possible," said Portman. "But the negotiations won't succeed unless the EU recommits to ending subsidies."

Last October, the United States lodged a complaint against EU subsidies to France-based Airbus with the WTO, triggering a counteraction from Europe against what it termed indirect US government aid for Chicago-based Boeing.

On Jan. 11 this year, the two sides said that they would try to resolve the subsidy dispute over a three-month negotiating period, deferring the cases they have brought before the WTO.

However, the negotiations failed to resolve the trade dispute. While saying it remained prepared to continue talks with the EU, the United States warned early April that it would resume its case at the WTO if the EU provides new government loans for Airbus.

(Xinhua News Agency via AP June 1, 2005)