UPDATE 1-Europe accuses U.S. of failing to cut Boeing aid


* U.S. said in September it had removed subsidies to Boeing

* EU says Boeing unfairly assisted by government researchdeals

(Updates with quotes, background)

BRUSSELS, Oct 11 (Reuters) - The European Union accused theUnited States on Thursday of ignoring a World Trade Organisationruling to stop subsidies to planemaker Boeing and askedthe Geneva-based body to investigate, prolonging the world'slargest trade dispute.

The United States said last month it had complied with anorder to withdraw subsidies to Boeing after the WTO found inMarch that the U.S. planemaker had received billions of dollarsin unfair aid.

But the European Commission, the EU's executive, saidWashington has shown no proof it has complied.

"It is now clear for the European Union that the UnitedStates has not only failed to properly implement the decision ofthe WTO but it has even provided new subsidies to Boeing," theCommission said in a statement.

The Commission said U.S. subsidies were costing Europeanaerospace companies billions of euros in lost revenue. RecentU.S.-EU talks failed to resolve this dispute, the Commisionsaid.

"The US claimed to have removed (the subsidies), butprovided no detailed evidence to support its claims," it said.

The U.S. Trade Representative's office said it had met adeadline to comply with the WTO's findings in a case brought bythe European Union. That was in response to the first claimlaunched by the United States more than seven years ago.

Brussels says Boeing is unfairly assisted by governmentresearch deals and other federal and local measures.

The WTO has also ruled against European support to Airbus,which is owned by EADS , in which the French governmenthas a stake and the German government has influence via aholding owned by Daimler .

In the row, the United States and the European Uniondisagree over the ruling against subsidies to Airbus, which theUnited States says far outstrip any U.S. government support forBoeing.

The United States has also accused the European Union ofignoring WTO decisions and is threatening up to $10 billion insanctions.

However, most observers expect both sides to eventuallynegotiate a settlement to end the row.

(Reporting by Robin Emmott; editing by John O'Donnell)

((robin.emmott@thomsonreuters.com)(+32 2 287 6835)(ReutersMessaging: robin.emmott.thomsonreuters.com@reuters.net))

Keywords: EU US/BOEING