February 2005 |
|||||
Volume 03, Issue
9 |
|||||
Industry Wrap |
Time for discussion United States and European Union set talks to end subsidies for jetliner production BY LEN VRANIAK U.S. and European Union trade representatives said last month they have created a framework for continuing negotiations to end government subsidies for large commercial aircraft development and production. This round of negotiations is scheduled to last three months. Boeing President and CEO Harry Stonecipher hailed this framework agreement by saying, "We're pleased that the United States and the European Union have taken an important step toward ending subsidies to establish much-needed balance in the commercial aircraft market." Among other things, the two sides agreed they would seek neither World Trade Organization litigation nor new subsidies during negotiations. "The objective on which we agreed is to secure a comprehensive agreement to end subsidiesand I repeat, end," said Richard Mills, spokesman for U.S. Trade Representative Robert Zoellick. "The U.S. will not agree to permit new aircraft subsidies that are illegal under World Trade Organization rules, and that certainly covers launch aid." Beyond the agreement's clear rejection of production and launch subsidies, it also calls for both sides to forge a new agreement on subsidies that uses a relatively restrictive definition of "subsidies" found in the WTO's 1994 Agreement on Subsidies and Countervailing Measures, which was signed by the United States and the European Union, as well as more than 125 other nations. "The 1994 definition of prohibited subsidies includes precisely the kind of aid Airbus has received from its sponsor governments for the past three decades," said Ted Austell, Boeing vice president for trade policy. "Europe's willingness to agree to using the 1994 definition as part of the negotiation framework signals that it may be slowly coming to grips with the idea that Airbus needs to operate on the same commercial principles as Boeing."
|
Contact Us | Site Map| Site Terms | Privacy | Copyright | ||||||
Copyright© Boeing. All rights reserved. |