[Congressional Record (Bound Edition), Volume 151 (2005), Part 5]
[Senate]
[Page 5923]
[From the U.S. Government Publishing Office, www.gpo.gov]




                         SUBMITTED RESOLUTIONS

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   SENATE CONCURRENT RESOLUTION 25--EXPRESSING THE SENSE OF CONGRESS 
           REGARDING THE APPLICATION OF AIRBUS FOR LAUNCH AID

  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:

                            S. Con. Res. 25

       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.

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