[Congressional Record Volume 140, Number 29 (Wednesday, March 16, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 16, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                       REEXAMINE USAIR--B.A. DEAL

                                 ______


                           HON. NEWT GINGRICH

                               of georgia

                    in the house of representatives

                       Wednesday, March 16, 1994

  Mr. GINGRICH. Mr. Speaker, trade tensions have our economic policies 
and priorities focused on Japan. But in the rush to deal with closed 
markets in one country, we must not allow ourselves to be blindsided by 
a protectionist threat from another.
  The culprit in this case is not Japan, our venerable Asian economic 
rival, but the United Kingdom, one of our closest and largest European 
trading partners.
  In the days to come, our Government may be forced to make trade 
policy decisions related to the United Kingdom no less serious than 
those we face in regard to Japan. Moreover, the outcome could well 
affect the credibility and success of future U.S. efforts to open 
markets around the world.
  The clock is winding down to the March 17 decision on renewal and 
possible expansion of the alliance between British Airways and USAir. 
Our Government granted conditional, provisional approval of that 
relationship a year ago, on the assumption that it would encourage the 
United Kingdom to conclude a long-sought agreement offering freer, more 
open competition in international aviation.
  Despite the best efforts of the U.S. Government, negotiations on a 
new aviation trade agreement have yielded little substantive progress. 
Over the course of five formal negotiating rounds and numerous other 
informal contacts, the United Kingdom has rejected United States calls 
for more competition and reciprocal access to international markets--
the principle at the heart of our trade policy.
  Instead, the United Kingdom has pursued policies intended to keep 
United States airlines at a clear disadvantage in their ability to 
serve the United Kingdom and beyond as its major carrier, British 
Airways, pursues unfettered access to the United States through the 
alliance with USAir.
  That imbalance is no longer tolerable--not just in view of the 
disappointing record of the United States-United Kingdom negotiations 
over the last year, but in view of the challenges Japan and other 
countries pose to the United States commitment to free and fair trade.
  The threat from the United Kingdom in aviation is no different from 
the one posed by Japan in cellular telephones or auto parts. As we work 
to open markets around the world, in some cases country by country, our 
incremental efforts cannot and must not be considered in isolation, but 
as part of a broad, coherent international trade strategy.
  In each case, we should be clear, consistent, and resolute--mindful 
that other countries are watching to see how we respond, and will 
tailor their own strategies accordingly.
  That defines the high stakes in the current showdown with the United 
Kingdom.
  The United Kingdom wants universal access to the United States, the 
largest, most lucrative aviation market in the world, while keeping its 
own carriers comfortably shielded from United States competition in 
their protected home market.
  If we are going to demand more open markets in one country, we must 
do no less in another. Taking tough action against market barriers in 
Japan while settling for them in the United Kingdom sets a double 
standard that undermines our overall trade policy efforts in the global 
arena. We should move on both fronts to send a clear signal of U.S. 
intent to seize every opportunity to create a more open, competitive 
marketplace for world trade.

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