The EU's Trade Charade.(ISSUES & INSIGHTS)(EDITORIALS)(Editorial)

Competition: In the European Union, the fight has just begun. No, we're not talking about the lost battle over its failed constitution, but of the EU's ongoing row with the U.S. over unfair subsidies to aerospace giant Airbus.

Tired of endless negotiations, the U.S. late Monday announced it will ask the World Trade Organization to sanction the 25-nation EU for its illegal subsidies to Airbus.

And who can argue America doesn't have a good case? Airbus was born, and continues to exist, as a creature of EU subsidies. Its successes are the result of massive government aid -- and extensive arm-twisting of potential foreign buyers by EU bureaucrats.

The subsidies have gone on for years, amounting to billions of dollars in unfair help. But what finally pushed the U.S. over the edge was Airbus' request for $1.7 billion in new EU aid. You see, Boeing has a new jet, the 787, and it looks like a winner. So cash-strapped Airbus wants to build a new plane too.

This is unfair trade, plain and simple, and the EU doesn't really deny it. It only counters that Boeing has received $23 billion in "hidden subsidies" over the years in the form of U.S. government and military contracts. (Of course, by such absurd logic, no private company anywhere would be able to contract with any government.)

So, in response to the U.S. announcement, the EU said it would file a counter-complaint against Boeing. In doing so, however, it all but admitted its action was little more than a nuisance suit.

"The WTO has better things to do than referee this grudge fight between Airbus and Boeing," said EU Trade Commissioner Peter Mandelson. We respectfully disagree.