[Congressional Record Volume 150, Number 130 (Monday, October 11, 2004)]
[Extensions of Remarks]
[Page E1875]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               WTO PROCEEDINGS REGARDING AIRBUS SUBSIDIES

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                           HON. DAVID DREIER

                             of california

                    in the house of representatives

                       Thursday, October 7, 2004

  Mr. DREIER. Mr. Speaker, I would like to commend Ambassador Zoellick 
and President Bush for their decisive steps to bring about an end to 
the European Union's longstanding practice of directly subsidizing 
their only large civil aircraft company. By artificially propping up 
Airbus for decades, the EU has distorted the international market and 
undercut the competitiveness of U.S. businesses and workers. Today's 
announcement that the U.S. will begin World Trade Organization (WTO) 
dispute settlement proceedings in this matter demonstrates this 
Administration's commitment to creating a competitive worldwide market 
for globally engaged companies.
  Since 1992, the large commercial aircraft industry has been governed 
by the U.S.-EU Agreement on Large Civil Aircraft. This agreement was 
intended to cap and gradually reduce direct government subsidies in the 
industry, particularly by restricting the amount of launch aid. 
However, subsidization of Airbus by EU member countries continues to 
increase. To date, not one Airbus model has been developed without 
significant government aid. The $15 billion in launch aid alone has in 
effect taken $35 billion off Airbus's balance sheet.
  The start of WTO proceedings in this case follows a months-long 
effort by Ambassador Zoellick to bring the EU to the negotiating table. 
The Bush Administration has made it clear that only an agreement that 
leads to an end of all subsidies will be acceptable, and I fully 
support the President in this objective.
  Restoring full, free and fair competition to the international civil 
aircraft industry will benefit consumers, businesses, workers and 
investors on both sides of the Atlantic. I look forward to continuing 
to work with Ambassador Zoellick in advancing our open trade agenda.

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