Hopefully, it is not the case of " SKY WARs Europe Vs. America "

Hopefully, it is not the case of

"SKY Wars Europe Vs. America "

Unfair European Union Subsidies Ending will make
Harmonize the Global Market

Re: US Marshall Plan Funds To Subsidize A350 (1) (2)

The subsidies in question include those relating to
the entire family of Airbus products (A300 through the A380) (3)

According to World News, triumet.net: May 18, 2005 when Airbus officials announced that they were applying for $1.7 billion in government support for their new plane, the A350, the U.S. said enough is enough: It announced that it was filing a lawsuit. And on May 31, the World Trade Organization began the largest litigation effort in its history. There are so many other reports showing that the Airbus Illegal export subsidies. (Search)

Per reference http://usinfo.state.gov/usa/infousa/facts/democrac/57.htm shows that The United States offered up to $20 billion for relief, but only if the European nations could get together and draw up a rational plan on how they would use the aid. The Marshall Plan, it should be noted, benefited the American economy as well. The money would be used to buy goods from the United States, and they had to be shipped across the Atlantic on American merchant vessels. But it worked. By 1953 the United States had pumped in $13 billion, and Europe was standing on its feet again. Moreover, the Plan included West Germany, which was thus reintegrated into the European community. (The aid was all economic; it did not include military aid until after the Korean War.) (7)

Despite the years of scandal and battles over subsidies, new subsidy improprieties come up every year. The plans to support the a350 are especially suspect: “A midnight amendment to Germany’s 2005 budget showed Germany plans to help the a350 with $890 million in government funds that originated as part of the U.S. Marshall Plan” (Chicago Tribune, May 20). The Marshall Plan was created to rebuild Germany after World War ii; it’s unlikely the drafters of the plan intended to rebuild Germany at an altitude of several thousand feet. (1) (2)

According to The United States further notes that certain launch aid provided for the A340 and A380 appear to be illegal export subsidies in contravention of certain provisions of Article 3 of the SCM Agreement. The United States is further concerned that the measures appear to be causing adverse effects to US in a manner contrary to the provisions of Articles 5 and 6 of the SCM Agreement. The United States is also concerned that the measures appear to be inconsistent with Article XVI:1 of GATT 1994. Finally, the United States is concerned that the measures have caused and continue to cause nullification or impairment of benefits to the United States under GATT 1994 within the meaning of Article XXIII:1. (3)

The measures include: the provision of financing for design and development to Airbus companies (“launch aid”); the provision of grants and government-provided goods and services to develop, expand, and upgrade Airbus manufacturing sites for the development and production of the Airbus A380; the provision of loans on preferential terms; the assumption and forgiveness of debt resulting from launch and other large civil aircraft production and development financing; the provision of equity infusions and grants; the provision of research and development loans and grants in support of large civil aircraft development, directly for the benefit of Airbus, and any other measures involving a financial contribution to the Airbus companies. The subsidies in question include those relating to the entire family of Airbus products (A300 through the A380) (3)

The 1992 agreement was negotiated, Airbus accounted for only about 30 percent of the global market. It now represents more than 50 percent of this market. Clearly, the 1992 agreement has outlived its usefulness.

The United States is further concerned that the measures appear to be causing adverse effects to US in a manner contrary to the provisions of Articles 5 and 6 of the SCM Agreement. (3)

See the Following Launch Aid By Plane from European Union: (2)

Launch Aid By Plane

Airbus	Subsidies By	Subsidy Amount	Total
A300/A310	Germany	$1.55 billion
	U.K	None
	France	$2.05 billion
	Spain	$233 million
Total			$3.83 billion
A320	Germany	$702 million
	U.K	$567 million
	France	$672 million
	Spain	$87 million
Total			$2.03 billion
A330/A340	Germany	$2.01 billion
	U.K	$1.04 billion
	France	$1.45 billion
	Spain	$270 million
Total			$4.77 billion
A330-200	Germany	None
	U.K	None
	France	$58 million
	Spain	None
Total			$58 million
A340-500 / A340-600	Germany	None
	U.K	$215 million
	France	$337 million
	Spain	$75 million
Total			$627 million
A380	Germany	$1.07 billion
	U.K	$867 million
	France	$1.37 billion
	Spain	$426 million
Total			$3.73 billion

Note: Dollar amounts reflect payments in each country's own currency, indexed to 2003, and converted at rates applicable in the year of disbursement.

Overview of infrastructure subsidies for the Airbus A380.

GERMANY: $857 million

$850 million: Spent by the City of Hamburg to fill a part of the River Elbe to accommodate the expansion of a production facility.

More than $7 million: Provided as a grant by the Land of Lower Saxony for the expansion of its facilities in the City of Nordenham.

U.K.: $408 million

$376 million: Provided to fund the Broughton site.

$32 million: Given as a land grant from the National Assembly for Wales.

FRANCE: $298 million

$206 million: A public investment for an assembly site in Toulouse.

$82.6 million: Provided for road construction between Langon (port on the Garonne River) and a production site in Toulouse.

$9.7 million: Provided for construction in ports and along the Garonne River to accommodate transportation of A380 fuselages.

SPAIN: $143 million

$143 million: Investments made in Puerto de Santa Maria, Illescas, Puerto Real and La Rinconada plants." .

Boeing has already lost its dominance in the industry—one critical to the U.S. both economically and militarily. Now the WTO is positioned to deal a major blow to Boeing by the end of the year. But all of this is just a shadow of a much larger battle developing between the EU and the U.S. (3)

WTO is the biggest World Trade Organization. The EU should committed to the WTO's bilateral agreements.

Transatlantic Economic Partnership formed in May 1998 for the main structure of bilateral relations.

However, EU continues to pursue for a long time Airbus subsidies and unfair global marketing. The Boeing Company has been put up too long with EU's Government LOAN subsidies.

It is clearly shows in Chapter 5 that The European Investment Bank Article 267 (ex Article 198e) The task of the European Investment Bank shall be to contribute, by having recourse to the capital market and utilizing its own resources, to the balanced and steady development of the common market in the interest of the Community. For this purpose the Bank shall, operating on a non-profit-making basis, grant LOANS and give guarantees which facilitate the financing in all sectors of the economy. Re: Chapter 5 The European Investment Bank Article 267 (ex Article 198e) (4)

It has been distorted Global market and the world market was completely down since EU subsidies was started and was not harmonized the global market, in spite of 9.11 incident. It has been hurting US Economic and other industries around the world include Boeing Company and lay off more than 35,000 people and ripple action started around the world regardless what it is shown from the "Article 132 (ex Article 112) Without prejudice to obligations undertaken by them within the framework of other international organization, Member States shall progressively harmonize the systems whereby they grant aid for exports to third countries, to the extent necessary to ensure that competition between undertakings of the Community is not distorted." (4) Unfair subsidies for Loan to Airbus does not only creating global market grows, but also it is disturbing the market value. It is not harmonizing the global market for around the world and UNFAIR TO THE BOEING COMPANY.

The Marshall Funds money is being used is really goeing to upset a lot of tax payers and it is disturbing the world. It is more disturbing part is the German government would use money it squirreled away from the Marshall Plan to fund an Airbus airplane. Germany is one of world's leading economies in 2005. It is no longer the bombed-out wasteland that existed in 1945. Airbus is not nonprofit organization.

It is very clear that the world wants to see stop LONG TIME UNFAIR EU SUBSIDIES. It was absolutely unfair for a long time like a cold war............very snicky way and acted like supporting the world but didn't support the world at all, instead, what have EU done? MONOPOLY GAME - EURO DOMINATING AND THE GLOBAL MARKET CRASHED.

It is positive to see that Many Senators (96) included U.S. Senators Patty Murray and Maria Cantwell approved on the Senate floor in April 11, 2005 on a resolution that called on European governments to reject launch aid for Airbus and supports the President's authority to take any action necessary to protect American aerospace jobs. The Senate voted on the resolution in April 11, 2005 (96 to 0)The result came out positive.(6) (6.1)

AIRBUS LAUNCH AID -- (Senate - April 11, 2005) (From Search)

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.

The Senate voted on the resolution in April 11, 2005 (96 to 0)The result came out positive. (6)(6.1)

References By:

The World News

(1) http://www.thetrumpet.com/index.php?page=article&id=1595

(2) http://www.airliners.net/discussions/general_aviation/read.main/2124074

(3) http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds316_e.htm

(4) http://europa.eu.int/eur-lex/lex/en/treaties/dat/11997M/htm/11997M.html#0145010077

(5) http://usinfo.state.gov/usa/infousa/facts/democrac/57.htm

(6) http://cantwell.senate.gov/news/record.cfm?id=243064&&days=2500&

(6.1)The result was announced--yeas 96, nays 0

(7) http://usinfo.state.gov/usa/infousa/facts/democrac/57.htm

Reported By: Catch4all.com, Sandra Englund, January 7, 2006, Revised January 14, 2006