[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. Con. Res. 25 Engrossed in Senate (ES)]
1st Session
S. CON. RES. 25
_______________________________________________________________________
CONCURRENT RESOLUTION
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.
Passed the Senate April 11, 2005.
Attest:
Secretary.
109th CONGRESS
1st Session
S. CON. RES. 25
_______________________________________________________________________
CONCURRENT RESOLUTION
Expressing the sense of Congress regarding the application of Airbus
for launch aid.