BROWNBACK COMMENTS ON REPORT THAT AIRBUS RECEIVED ILLEGAL EUROPEAN UNION SUBSIDIES World Trade Organization rules that company received illegal government funds
WASHINGTON - U.S. Senator Sam Brownback today commented on the World Trade Organization's report on Airbus and the illegal subsidies the company was given by the European Union. The WTO ruled that the European Union illegally subsidized the development of the entire family of Airbus aircraft (A300 through A380), including the A330 which is the platform competing for next United State Air Force tanker. "Airbus should not be allowed to offer bargain prices for its aircraft while it hides its development costs," said Brownback. "Airbus has acted dishonestly, and this dishonesty has had a devastating effect on the U.S. commercial aircraft industry. We cannot let a government-directed industrial policy of the E.U. continue to distort the global commercial aircraft marketplace. I urge the Obama Administration and the U.S. Trade Representative to pursue all means necessary to ban these illegal subsidies and forbid the use of launch aid by the E.U. in the development of the A350 and any other new aircraft." Brownback continued "Now that an outside, unbiased organization has ruled that Airbus was illegally subsidized, it is a no brainer that the bidding process for the tanker project should incorporate this ruling. The Department of Defense should give this matter serious consideration when it restarts the tanker competition this fall. The WTO has ruled that Airbus acted illegally when developing the A330; the Department of Defense should not look the other way." Last year, Airbus was awarded a multibillion dollar contract by the United States Air Force under which the A330 would be used as the Air Force's new refueling tanker. Last June, the Government Accountability Office gave a vote of no-confidence in the Air Force decision to award the tanker contract to Airbus. Boeing had competed with Airbus/EADS for the contract. Brownback added "In a full and open global marketplace, U.S. aerospace workers and companies can compete and win against the world's best for both commercial and military aircraft contracts. We must ensure that we give them a fighting chance to grow and prosper."
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