Washington’s two U.S. senators continued their calls for an end to European Union aid to Airbus on Monday in a Seattle press conference timed to coincide with the opening of the Paris air show.
Along with new airplanes and technology, there’s something else on display at the world’s biggest air show, said Democratic Sen. Patty Murray: “the fruits of some 30 years of direct cash advances and illegal subsidies to Airbus.”
Fellow Democrat Sen. Maria Cantwell praised the Bush administration for pursuing a World Trade Organization complaint against the EU over its financial support of Airbus.
“These subsidies violate international trade rules,” Cantwell said. “It’s time for our government to stand up for our jobs.”
In Geneva on Monday, the United States and the European Union blocked requests from the other asking the WTO to create panels to investigate aerospace industry subsidies.
The moves were routine bureaucratic maneuvering – both sides are expected to make second requests for the panels to be set up, at which point the WTO will move ahead with its investigation of U.S. subsidies to Boeing and European aid to Airbus. That will happen after June 23.
In Seattle, Murray and Cantwell echoed the U.S. and Boeing position that European governments have distorted the market for commercial airliners by providing loans that don’t have to be repaid if airplanes don’t sell.
“Launch aid from European governments allows Airbus to develop new planes without risking financial loss,” Cantwell said. “We should all be so lucky.”
Both senators specifically objected to Airbus getting any cash to help it develop its proposed A350, which is intended to compete against Boeing’s 787. European governments are considering giving Airbus up to $1.7 billion to develop the plane.
“That is wrong, and the WTO should prohibit any new launch aid,” Cantwell said.
“The Europeans understand that without the subsidies, without an unfair advantage, they would have a heck of a time competing head-to-head with American workers,” said Murray, who was flanked by leaders of the two largest unions for Boeing workers. “They would lose.”
The Associated Press contributed to this report.
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