(Adds details throughout)
* EU ready to begin talks "immediately" with US
* Wants "no preconditions" on aid for Airbus A350
* US, EU also discuss Doha round, bilateral trade forum
By Doug Palmer
WASHINGTON, May 11 (Reuters) - The European Union is ready
to begin talks with the United States to end a long-running
dispute over support for rival aircraft makers Boeing Co
EU Trade Commissioner Karel De Gucht told reporters the bloc could start negotiations "immediately," as long as there were "no preconditions" on future European government aid for Airbus's new A350 plane.
"But it is obvious once you have those negotiations, that the whole package should also be on the table. You will not be able to avoid negotiations also on that," De Gucht said.
Asked after meetings with U.S. Trade Representative Ron Kirk and White House deputy national security adviser Michael Froman if he expected such talks to begin, De Gucht said "we'll have to see in the coming weeks."
U.S. trade officials said they stood ready to discuss an agreement with the EU and relevant member states. "But any productive discussions must necessarily address all WTO-inconsistent subsidies to civil aircraft," USTR spokeswoman Nefeterius McPherson said.
A World Trade Organization panel called on European governments in March to end illegal subsidies for Airbus in a case filed years ago by the United States, according to sources familiar with the confidential ruling.
Airbus has argued that the decision should not affect the A350 since it was not covered in the U.S. complaint. But Washington believes the ruling should set a precedent for Airbus projects launched after it filed its case.
COUNTERSUIT
A second panel is expected to release its preliminary ruling by late June in a countersuit brought by the EU over U.S. support for Boeing.
It has been widely assumed that serious negotiations to resolve the dispute would not begin until that ruling was released, and both sides could see how much damage had been inflicted on U.S. support programs for Boeing.
"We believe there should be negotiations without preconditions. So as far as we are concerned the negotiations could also start immediately because (insisting) that we have to wait for the outcome of the panel would itself be a precondition," De Gucht said.
"The real question is can you develop a large aircraft without subsidies ... I think Airbus can't and Boeing can't and that's where you should come to a mutual understanding what is acceptable and what is not acceptable."
De Gucht also discussed with U.S. officials prospects for concluding the Doha round of world trade talks and the EU's interest in revitalizing a bilateral forum known as the Transatlantic Economic Council (TEC).
He acknowledged the current Doha package is not politically saleable in the United States. But the only solution is to try to improve it, since it is unrealistic to think negotiators could start from scratch on a new deal, De Gucht said.
A date for the next TEC meeting will be set when the two sides agree on a short list of products or sectors where they can boost trade by reducing regulatory barriers, he said.
De Gucht was vague on further details, but said the two sides should concentrate work on emerging sectors where there is less regulatory conflict before tackling older areas.