Local view for "http://purl.org/linkedpolitics/eu/plenary/2008-07-07-Speech-1-109"
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"en.20080707.17.1-109"2
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"Madam President, I would like to reply and answer the oral question on behalf of Commissioner Mandelson, who was not able to attend today because he is in the process of deep bilateral negotiations on the Doha Round.
I would like to take this opportunity to thank the honourable Member of the European Parliament for his interest in and support for this cause, as demonstrated in the oral question and resolution provided to us.
The US case against European support for Airbus and the European case against US subsidies to Boeing are currently at the WTO Panel stage and the European legal position has been defended. We are now expecting the interim reports in both cases in the fall or winter. The next steps will be determined by the outcome of the dispute and by the underlying interests which led to it.
On the question of how this affects the ability of the industry to compete, we would like to say that we see no reason why the pending EU and US litigation in the WTO over support to Airbus and Boeing should affect the ability of European industry to compete fairly and in public procurement competitions with the United States.
Government procurement is about providing the best equipment, at the best value for the taxpayers, in the tanker procurement. The US Air Force has determined that the plane offered by Northrop Grumman and the EADS is superior to the Boeing and is the best tanker to meet its needs. The question of support for Airbus is immaterial in this assessment. The WTO litigation and the procurement have nothing to do with each other.
On the United States Government Accountability Office reactions, we would like to say that the US Air Force’s selection of the Northrop Grumman KC-45 remains in force. There is a misperception that Northrop Grumman and the EADS North America have somehow lost or that the Boeing award has been reversed. Northrop Grumman and EADS North America remain under contract, albeit under a stop-work order, which places on hold the work under contract.
The US Government Accountability Office reviewed the Air Force’s evaluation process, not the capabilities of the aircraft. There is no requirement or direction from the Accountability Office to recompete the previous contract award. The Air Force and Department of Defense have indicated that the KC-45 best meets the USAF’s requirements. The Accountability Office has requested the Air Force to respond regarding the steps it will take within 60 days of the 18 June announcement.
In general, the government support for aerospace meets the need that certain developments in the large civil aircraft industry require very high levels of investment. It is the Commission’s view that any government support for aerospace on both sides of the Atlantic has to be balanced, in order to ensure that the conditions of competition are not distorted. If this is the case, such support can contribute to innovation, increase safety and improve environmental performance and efficiencies in air transportation. It is in the interests of airlines and consumers, as well as governments, to maintain a high level of healthy competition in the aircraft sector.
On the prospects of the bilateral agreements of 1992, we would like to inform you that, despite several good-faith attempts to solve the dispute amicably over the past years, the differences between the two sides – the US and the EU – have proven too big. The US has denied there are any subsidies to Boeing while at the same time demanding that the EU put an end to European support to Airbus. On this basis it has not been possible to establish a fair and balanced basis for a negotiated settlement yet.
On 18 October 2007 Boeing publicly rejected Airbus’s offer to explore an amicable solution. We should also be aware that, with the current pre-electoral atmosphere in the US, it may not be easy at the present time to find a balanced settlement. We therefore do not expect that this dispute can be resolved in the near future, before the WTO has ruled on both the Airbus and Boeing cases."@en1
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