For Immediate Release

October 6, 2004

REP. DICKS APPLAUDS U.S. ACTION TO END AIRBUS SUBSIDIES

WASHINGTON, D.C. – “We are finally on a course that will level the playing field in the world aircraft manufacturing market,” U.S. Rep. Norm Dicks said Wednesday as the U.S. government launched a World Trade Organization dispute against the European Union designed to end unfair subsidies of Airbus aircraft.

             In recent years, Rep. Dicks has prodded U.S. Trade Representative Robert B. Zoellick and other American trade officials to “recognize and respond to the E.U.-government subsidies that give Airbus Industrie an unfair and illegal advantage over Boeing in the marketplace.”  Just last week he met with European Union Trade Commissioner Pascal Lamy in Washington, who refused to concede that the aircraft launch aid provided to Airbus gives the consortium an improper advantage. [See Rep. Dicks’ statement: http://www.house.gov/dicks/news/airbus-subsidies.htm]

            In a statement last week in the House, the congressman called for the U.S. to withdraw from the bilateral agreement it reached with the European Community in 1992 regarding civil aircraft.  He said the agreement “is academic today, and it only confirms a subsidy arrangement that has shifted manufacturing employment from the U.S. to Europe over the past 10 years."

          Rep. Dicks said: “Today’s action announced by USTR Zoellick signals our immediate withdrawal from that agreement, and it will finally bring to light the reality that this is a company that cannot fail.  The government subsidies are provided with no need to repay launch aid if the plane fails to sell.”  Dicks said that today’s action addresses the current subsidies that have removed any corporate risk from Airbus as it launches its new “superjumbo” A-380 airliner, in addition to future unfair competition against Boeing’s new 7E7 aircraft.

            “If the A-380 fails, or if an insufficient number are ever sold to justify the development costs, Airbus will not have to repay the financial assistance that it has been given to launch the plane,” Rep. Dicks said.  In comparison, he said, the Boeing Company, one of the largest U.S. exporters, must assume all the risks of launching a new aircraft such as the 7E7. 

            Rep. Dicks applauded the U.S. action, which he said “initiates a process that signals to the world that we will demand a level playing field and that we will no longer ignore blatant violations of international trade rules.”  He said he was confident that the stronger trade stance against Airbus is consistent with views expressed by Senator Kerry, and that “the Europeans should understand that it will remain U.S. policy no matter who is in the White House next year.”

Home >> Newsroom >> Press Releases