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Feb 14 (Reuters) - The U.S. government on Friday raised tariffs on aircraft imported from the European Union, ratcheting up pressure on the EU to resolve an epic 16-year-old dispute over support for airplane makers, and raising the stakes in broader talks to reach a U.S.-EU trade deal.
The World Trade Organization has found the world's two largest planemakers received billions of dollars of unfair subsidies in a pair of cases dating back to 2004 and is expected to allow both sides to impose tariffs, starting with the United States.
Here are highlights of the feud that has spawned thousands of pages of rulings, triggered threats of tit-for-tat tariffs on goods from plane parts to whisky and left both sides claiming victory while racking up an estimated $100 million in costs.
2004
The U.S. seeks talks with the EU and Airbus host nations Britain, France, Germany and Spain over alleged unfair subsidies via government loans. Washington terminates a 1992 U.S.-EU agreement covering support for Airbus and Boeing. The EU files a complaint on U.S. aid for Boeing.
2005
The WTO launches twin probes into public support for Boeing and Airbus after bilateral negotiations fail.
2006
Airbus announces a new A350 jetliner for which it will seek further government loans from host nations.
2009
The WTO issues an interim ruling that some European aid provided to Airbus violated a ban on export subsidies - a type of aid deemed most harmful and therefore automatically banned.
2010
The WTO demands a halt to unfair aid for jets including the Airbus A380 superjumbo. It says some government loans for the jet amount to "prohibited" export subsidies. But it rejects a U.S. request to include aid for the newer A350 in the case.
2011
The EU loses an appeal and is given until December to comply. However the WTO drops its finding that the A380 loans are in the "prohibited" category, softening its earlier ruling.
A separate WTO panel partially backs the EU in its counter-case alleging $19 billion of support for Boeing from the U.S. government, NASA and various states and municipalities, and rules against aid for Boeing worth at least $5.3 billion.
2012
WTO appeal judges broadly uphold the ruling against U.S. support for Boeing.
Both sides say they have complied with the WTO's rulings, while accusing the other side of failing to do so.
2013
Boeing announces the twin-engined 777X and agrees to build it in Washington state shortly after the local legislature agrees $8.7 billion in new tax breaks.
2014
The EU opens a second front in the trade battle by launching a separate complaint against the 777X tax breaks granted by Washington state and this time chooses a faster, all-or-nothing approach by targeting them purely as "prohibited" subsidies - without the usual fallback of a second, softer claim.