[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. Con. Res. 140 Introduced in Senate (IS)]







108th CONGRESS
  2d Session
S. CON. RES. 140

   Urging the President to withdraw the United States from the 1992 
 Agreement on Government Support for Civil Aircraft with the European 
     Union and immediately file a consultation request, under the 
   Understanding on Rules and Procedures Governing the Settlement of 
 Disputes of the World Trade Organization, on the matter of injury to, 
and adverse effects on, the commercial aviation industry of the United 
                                States.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 5, 2004

  Mr. Brownback (for himself and Mr. Roberts) submitted the following 
 concurrent resolution; which was referred to the Committee on Finance

_______________________________________________________________________

                         CONCURRENT RESOLUTION


 
   Urging the President to withdraw the United States from the 1992 
 Agreement on Government Support for Civil Aircraft with the European 
     Union and immediately file a consultation request, under the 
   Understanding on Rules and Procedures Governing the Settlement of 
 Disputes of the World Trade Organization, on the matter of injury to, 
and adverse effects on, the commercial aviation industry of the United 
                                States.

Whereas as recently as 1990, Boeing was the uncontested world leader in 
        commercial aviation, and had produced over 55 percent of all the jet 
        commercial aircraft ever produced; McDonnell Douglas produced 25 
        percent, while Airbus accounted for only 6 percent;
Whereas in 1992 the Agreement on Government Support for Civil Aircraft was 
        negotiated between the United States and the European Community to 
        address the near total subsidization of Airbus commercial aircraft 
        development;
Whereas the agreement stated that no more than 33 percent of total aircraft 
        development costs could be borne by the respective governments;
Whereas the agreement ``recogniz[ed] that the disciplines in the GATT Agreement 
        on Trade in Civil Aircraft should be strengthened with a view to 
        progressively reducing the role of government support'';
Whereas Boeing has experienced a dramatic downturn in the last three years, 
        losing thousands of employees and a significant market share;
Whereas Airbus has continued to increase market share at a time of significant 
        turbulence in the commercial airline industry as a result of continued 
        government subsidies;
Whereas the European Union has not abided by the agreement to phase out 
        subsidies;
Whereas European Union officials have publicly reaffirmed their plan to achieve 
        global leadership in aerospace based on continued subsidization, noting 
        in ``European Aeronautics: A Vision for 2020'', that ``gradual 
        realization of our ambitious vision must be facilitated by an increase 
        in public funding. European aeronautics has grown and prospered with the 
        support of public funds and this support must continue if we are to 
        achieve our objective of global leadership.'';
Whereas the new Airbus A380 is the most subsidized aircraft ever, having 
        received more than $6,000,000,000 in direct subsidies from the European 
        Union, including $3,700,000,000 in launch aid;
Whereas in public statements, Airbus representatives have indicated that the 
        company may launch yet another new aircraft, which may require billions 
        of dollars of additional subsidies from the European Union;
Whereas Airbus has achieved market parity with Boeing; therefore the 1992 
        agreement has outlived its usefulness;
Whereas the parties to the 1992 agreement noted ``their intention to act without 
        prejudice to their rights and obligations under the GATT and under other 
        multilateral agreements negotiated under the auspices of the GATT'';
Whereas on a visit to Washington State on August 13, 2004, President George W. 
        Bush said ``I've instructed U.S. Trade Representative Bob Zoellick to 
        inform European officials in his September meeting that we think these 
        subsidies are unfair and that he should pursue all options to end these 
        subsidies--including bringing a WTO case, if need be'';
Whereas the Boeing Company has more than 150,000 employees within the United 
        States and has 26,000 suppliers in all 50 States;
Whereas the United States Trade Representative has strongly supported Boeing's 
        efforts to seek redress in this matter and has patiently and 
        appropriately pursued bilateral dialogue with the European Union in an 
        attempt to negotiate a new agreement to discipline subsidies; and
Whereas public statements by the United States Trade Representative have made it 
        clear that bilateral consultations on the matter of ending commercial 
        aviation subsidies by the European Union have been unproductive and that 
        further talk is unlikely to resolve the serious injury caused to the 
        Boeing company: Now, therefore, be it
    Resolved by the Senate (the House of Representatives concurring), 
That it is the sense of Congress that--
            (1) the President should direct the United States Trade 
        Representative to withdraw the United States from the Agreement 
        on Government Support for Civil Aircraft that was entered into 
        with the European Community in 1992; and
            (2) the President should direct the United States Trade 
        Representative immediately to file a consultation request, 
        under the Understanding on Rules and Procedures Governing the 
        Settlement of Disputes of the World Trade Organization, on the 
        matter of serious injury to the commercial aviation industry of 
        the United States.
                                 <all>