WASHINGTON (AP) – The Bush administration said Monday it would bring a trade case alleging the European Union is providing illegal subsidies to Airbus, the major competitor to U.S.-based Boeing Co.

U.S. Trade Representative Rob Portman said the administration had decided to proceed with a case before the World Trade Organization in light of preparations by member states of the European Union to commit $1.7 billion in new launch aid to Airbus.

“The EU’s insistence on moving forward with new launch aid is forcing our hand,” Portman said in a statement announcing the administration’s decision.

Both sides argue that the other is providing WTO-illegal subsidies to support a domestic airplane manufacturing industry.