Local view for "http://purl.org/linkedpolitics/eu/plenary/2007-11-13-Speech-2-383"

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"en.20071113.35.2-383"2
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"As you know, the European Union is currently defending Airbus in a case before the WTO brought by the United States on behalf of Boeing. I believe it is important at this stage of the dispute for this body to build support for the European Union’s position and against that of the United States. I should state at the outset that this entire dispute arose because Boeing no longer wished to participate in a mutually-agreed international agreement between the United States and the European Union – an agreement that allowed certain forms of government support to both Airbus and Boeing, the only two producers of large civil aircraft in the world. As my colleagues know, such agreements are the best foundation upon which relations among nations are based. It is incumbent on nations to abide by their obligations under these treaties. Airbus has. The European Union has. Unfortunately, the United States has not. Airbus and the European Union have constantly abided by the spirit and intent of the 1992 Bilateral Aircraft Agreement. For 11 years, competition between Airbus and Boeing flourished, resulting in important breakthroughs in commercial aviation technology and design that have led to safer, more efficient and more environmentally-sensitive air travel. But Boeing decided it no longer wanted to abide by the obligations of this agreement. Instead, with the assistance of the United States, they attacked Airbus for exacting so-called ‘illegal subsidies’ – the very government assistance that Boeing had originally agreed to in the 1992 agreement. As many of my colleagues are aware, Airbus’s government loan funding is a targeted and non-trade-distorting use of a government’s limited research resources. It offers governments a fair return and brings to the market innovative products, which benefit everyone. Simply stated, European government research and development funding is limited, repayable and has no impact on Boeing’s ability to compete. Meanwhile, because Boeing produces both civil and military aircraft for the United States, technology used in its commercial aircraft today benefits greatly from US government awards to Boeing military research and development contracts. For example, Boeing’s current knowledge about composites, which is being used extensively in its new 787 Dreamliner, stems – by its own admission – from its work on developing the V-22, the F-22, the B-2 and the Joint Strike Fighter. This federal assistance is supplanted by US state and local government support to Boeing in the form of tax breaks, favourable real estate and local infrastructure improvements intended to secure the company’s presence and job base in selected US cities. While Boeing opposes the Airbus repayable assistance programme, it has no problem with identical programmes benefiting Boeing in Japan. I highlight these points not to imply that the assistance received by Boeing (repayable in Japan but not in the US) is somehow worse than the repayable European loans received by Airbus. I mention this assistance that Boeing receives to illustrate the reality that both sides benefit from some form of government assistance, from nations wishing to retain their global leadership roles in aviation. While Boeing has benefited from government support, it seeks to deny Europe similar benefits. I believe we should urge the Commission to direct Airbus and Boeing to develop a forward-looking arrangement that provides a stable environment for both sides to compete and develop state-of-the-art aircraft well into the future. Maybe a six-month moratorium on the WTO case would allow the two companies time to complete a new discipline. This is the opportunity that is now before us. We can dwell on the past or look forward to the future."@en1
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