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Inslee applauds WTO Airbus subsidy ruling; encourages White House to vigorously enforce sanctions

September 4, 2009

“This crushing repudiation of illegal launch aid for Airbus is vindication of what we have been saying for years – these huge subsidies, given before a plane was even developed, grossly violates international law,” said Representative Jay Inslee, who was briefed on the decision by the office of the U.S. Trade Representative. 

“Those who would criticize us for insisting on action on the basis that this somehow is anti-competitive have it exactly backwards,” added Inslee.  “In fact, free and fair competition makes action here absolutely necessary because to do otherwise would make a mockery of the rules based trading system we have developed. Trade rules only have meaning when they are enforced.”

Airbus’ attempt to spin this decision ignores three differences between the European Union’s illegal subsidies for Airbus and the European Union’s allegations with regard to Boeing.  First, while Washington State tax code is applicable to any aeronautical manufacturer, the European subsidies were available exclusively to Airbus.  Second, the illegal European subsidies were cash payments, prior to plane development.  Finally, the scale of illegal subsides pales in comparison to the Airbus allegations.

“I will work with my colleagues to see that Congress and the Administration seek enforcement of these rules by appropriate sanctioning,” said Inslee. “ This isn’t just a matter of dollars.  We are talking about real jobs in Washington State, and it is critical that Boeing workers have a fair chance to compete.”

In regard to the pending decision by the U.S. Air Force to buy its tanker replacement fleet from either Boeing or Airbus, Inslee said the following:  “This ruling should give the Department of Defense pause as they consider the aircraft that will replace its tanker fleet.  The tankers are merely modified versions of the commercial aircraft that may have been illegally subsidized for Airbus, so this WTO decision casts serious doubts on the validity of any Airbus tanker bid.   We ought not reward the European Union for their unfair trade practices by handing them this $35 billion contract.”

Congressman Inslee and others in the Washington State federal delegation have for years worked together to raise the profile of the Airbus subsidies, ensure that the Air Force tanker program is fairly managed, and most recently to secure the 787 production lines in Washington State.  The federal delegation team from Washington State, including Senators Murray and Cantwell, Congressmen Norm Dicks, Rick Larsen, and Jay Inslee have been staunch advocates to ensure a vibrant and competitive aerospace industry remains in Washington State. 

Inslee also noted the precedence that today’s ruling sets for future entrants into the large plane market:  “Moving forward, we must send the message that it is unacceptable for Airbus to subsidize their planned 787 competitor, the A350, and that other countries such as China, Canada, and Brazil cannot subsidize their planned large plane entrants.”