The European Union abandoned its efforts to expand rules for aviation emissions in exchange for cooperation in setting up a global scheme, easing ongoing fears of trade wars. Tension has mounted as the EU moved closer to rules that would charge airline companies operating in member states for all emissions worldwide, and the threat of trade conflicts loomed as Chinese and Indian officials threatened lawsuits and boycotts. China suspended a sale worth billions of dollars of Airbus jetliners, and airlines warned of retaliatory measures including airspace restrictions. However, a draft deal from the United Nations aviation body caused industry officials to express optimism. "We are optimistic that the Assembly will make progress, provided they keep focused on achieving an agreement on a global scheme," said Anthony Concil, communications director of the International Air Transport Association. The proposal would require countries to find a "market-based mechanism" for reducing emissions by 2016, though key details must be decided next month at a full assembly. Though the deal delays the threat of a trade war, experts see it as a diplomatic blow. "You could call it a defeat for Europe," said Christian Egenhofer, with the Centre for European Policy Studies. For the full story, see http://uk.reuters.com/article/2013/09/05/us-eu-aviation-idUKBRE9840RW20130905. Earlier: http://elr.info/international/international-update/eu-suspends-aviation-rule-extension.