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Robert Zoellick, the US Trade Representative, said the White House was "disappointed" with the outcome.
BBC: EU scores in trade war with US
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Mr Zoellick was a former US trade representative before becoming Ms Rice's deputy in early 2005.
BBC: NEWS | Americas | Top US diplomacy official resigns
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"Government-authorised piracy would undermine chances for a settlement, " said a spokeswoman for the US Trade Representative's office.
BBC: US warns Antigua and Barbuda over 'piracy site' plan
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The US trade representative, Ron Kirk, said that even sensitive issues such as agricultural subsidies will be up for discussion.
BBC: EU and US free-trade talks launched
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Mr Bayh is holding up the confirmation of Rob Portman, the Ohio congressman whom George Bush has nominated for US trade representative, until his bill is voted on.
ECONOMIST: Putting up the barricades | The
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"Trade enforcement is critical for ensuring that our clean energy goods and services can compete on an equal footing around the world, " said Ron Kirk, the US Trade Representative.
BBC: US takes India to WTO over solar cell imports
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"I've instructed US trade representative Bob Zoellick to inform European officials in his September meeting that we think these (Airbus) subsidies are unfair and that he should pursue all options to end these subsidies, including bringing a WTO case, if need be, " he said.
BBC: NEWS | Business | Europe and US in aircraft aid row
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Many newspapers there carried comments from the state's senior Democratic representative calling for changes in trade and tax policy to help US automakers better compete with overseas rivals.
BBC: NEWS | Business | Media focus on Ford uncertainty