[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. Con. Res. 25 Held at Desk Senate (HDS)]







109th CONGRESS
  1st Session
S. CON. RES. 25

 Expressing the sense of Congress regarding the application of Airbus 
                            for launch aid.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 7, 2005

Mr. Frist (for himself, Mr. Reid, Mr. Grassley, Mr. Baucus, Mr. Talent, 
  Mrs. Murray, Ms. Cantwell, Mr. Durbin, and Mr. Obama) submitted the 
  following concurrent resolution; which was ordered held at the desk

_______________________________________________________________________

                         CONCURRENT RESOLUTION


 
 Expressing the sense of Congress regarding the application of Airbus 
                            for launch aid.

Whereas Airbus is currently the leading manufacturer of large civil aircraft, 
        with a full fleet of aircraft and more than 50 percent global market 
        share;
Whereas Airbus has received approximately $30,000,000,000 in market distorting 
        subsidies from European governments, including launch aid, 
        infrastructure support, debt forgiveness, equity infusions, and research 
        and development funding;
Whereas these subsidies, in particular launch aid, have lowered Airbus' 
        development costs and shifted the risk of aircraft development to 
        European governments, and thereby enabled Airbus to develop aircraft at 
        an accelerated pace and sell these aircraft at prices and on terms that 
        would otherwise be unsustainable;
Whereas the benefit of these subsidies to Airbus is enormous, including, at a 
        minimum, the avoidance of $35,000,000,000 in debt as a result of launch 
        aid's noncommercial interest rate;
Whereas over the past 5 years, Airbus has gained 20 points of world market share 
        and 45 points of market share in the United States, all at the expense 
        of Boeing, its only competitor;
Whereas this dramatic shift in market share has had a tremendous impact, 
        resulting in the loss of over 60,000 high-paying United States aerospace 
        jobs;
Whereas on October 6, 2004, the United States Trade Representative filed a 
        complaint at the World Trade Organization on the basis that all of the 
        subsidies that the European Union and its Member States have provided to 
        Airbus violate World Trade Organization rules;
Whereas on January 11, 2005, the European Union agreed to freeze the provision 
        of launch aid and other government support and negotiate with a view to 
        reaching a comprehensive, bilateral agreement covering all government 
        supports in the large civil aircraft sector;
Whereas the Bush administration has shown strong leadership and dedication to 
        bring about a fair resolution during the negotiations;
Whereas Airbus received $6,200,000,000 in government subsidies to build the 
        A380;
Whereas Airbus has now committed to develop and produce yet another new model, 
        the A350, even before the A380 is out of the development phase;
Whereas Airbus has stated that it does not need launch aid to build the A350, 
        but has nevertheless applied for and European governments are prepared 
        to provide $1,700,000,000 in new launch aid; and
Whereas European governments are apparently determined to target the United 
        States aerospace sector and Boeing's position in the large civil 
        aircraft market by providing Airbus with continuing support to lower its 
        costs and reduce its risk: Now, therefore, be it
    Resolved by the Senate (the House of Representatives concurring), 
That--
            (1) European governments should reject Airbus' pending 
        application for launch aid for the A350 and any future 
        applications for launch aid;
            (2) the European Union, acting for itself and on behalf of 
        its Member States, should renew its commitment to the terms 
        agreed to on January 11, 2005;
            (3) the United States Trade Representative should request 
        the formation of a World Trade Organization dispute resolution 
        panel at the earliest possible opportunity if there is no 
        immediate agreement to eliminate launch aid for the A350 and 
        all future models and no concrete progress toward a 
        comprehensive bilateral agreement covering all government 
        supports in the large aircraft sector; and
            (4) the President should take any additional action the 
        President considers appropriate to protect the interests of the 
        United States in fair competition in the large commercial 
        aircraft market.
                                 <all>