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Jay Inslee: Washington's 1st Congressional District

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Inslee and Dunn Rally 240 Members of Congress in Support of Case Against Airbus Subsidies

November 18, 2004

U.S. Reps. Jay Inslee (WA-01) and Jennifer Dunn (WA-08) spearheaded support from a strong majority of Congress who signed a letter to U.S. Trade Ambassador Bob Zoellick expressing support for the United States' WTO case against European government subsidies to Airbus. Signed by two hundred forty members of Congress from forty one states, this Congressional letter demonstrates that there is deep, bipartisan support in Congress and across America for an end to Europe's unfair subsidies to Airbus.The letter also conveyed strong approval for U.S. Trade Ambassador Bob Zoellick's decision to withdraw from the outdated 1992 United States-European Union agreement on Trade in Large Civil Aircraft.

"The breadth of bipartisan Congressional support in this letter against Airbus' unfair subsidies is phenomenal," said Inslee. "Today Congress showed a clear commitment to back our government's case in the World Trade Organization against Europe's anticompetitive behavior. This is an important step in leveling the international trade playing field for Boeing and American aerospace workers who are being harmed by the Europeans' decision to give Airbus an unfair, unnecessary advantage. We are serious about restoring a fair environment to the international aerospace trade."
"This letter demonstrates the commitment of Congress to fully support the administration in its effort to eliminate the government subsidies Airbus receives. Congress sends this strong message to the EU that we will not relent until a resolution is achieved that requires Airbus to compete fairly," said Dunn.

In October, U.S. Trade Ambassador Zoellick announced the U.S. government's decision to file a case at the WTO over continued European government subsidization of its commercial aircraft manufacturer, Airbus. European subsidies to Airbus have totaled about $15 billion in launch aid, which would amount to a $35 billion debt on Airbus' books if the company had borrowed these funds commercially. Because launch aid and other subsidies shield Airbus from full commercial risk, Airbus can pursue more aggressive pricing and financing practices than a non-subsidized competitor such as Boeing.

The text of the letter from the Members of Congress is as follows:

November 18, 2004

The Honorable Robert B. Zoellick
United States Trade Representative
600 17th Street, N.W.
Washington, DC 20508

Dear Ambassador Zoellick,

We write to commend you for your dedication to ensuring that U.S. companies can compete on a level playing field. We strongly support your decision to withdraw from the outdated 1992 United States-European Union Agreement on Trade in Large Civil Aircraft and your decision to file a trade case at the World Trade Organization over continued European government subsidization of its commercial aircraft manufacturer, Airbus.

There is broad, bipartisan support in Congress for your efforts to challenge the massive subsidies that European governments have been giving to Airbus for decades.

As you are well aware, Airbus has received about $15 billion in launch aid, which, if borrowed commercially, would have added $35 billion in additional debt to its books. This subsidy offers a significant advantage for Airbus over its sole competitor, U.S. aerospace company Boeing.

Because launch aid and other subsidies shield Airbus from the full assumption of commercial risk, it can pursue more aggressive pricing and financing practices than a non-subsidized competitor such as Boeing.

It is time to put a stop to this anti-competitive behavior. Boeing, the nation's largest exporter of manufactured goods, has paid a heavy price: a loss of 20 percentage points of market share in just the last five years; significant sales losses due to Airbus' ability to use its subsidized advantage to dramatically undercut pricing on airplanes; and the loss of tens of thousands of high-paying American manufacturing jobs.

America's aerospace workers deserve a level playing field. Your decision to pursue this course of action is based on clear evidence that Airbus has received an unfair advantage, not any outside motives, as suggested by your counterparts in Europe.

The future of a critical American industry hangs in the balance, and we are solidly behind your efforts to stop Europe's unfair subsidies. We are determined to see this case through to the end, and we look forward to giving you any assistance necessary.

Very truly yours,

Jay Inslee

Jennifer Dunn

Abercrombie, Neil

Ackerman, Gary L.

Aderholt, Robert B.

Akin, W. Todd

Alexander, Rodney

Baca, Joe

Bachus, Spencer

Baird, Brian

Baldwin, Tammy

Ballenger, Cass

Bartlett, Roscoe G.

Beauprez, Bob

Becerra, Xavier

Bell, Chris

Berkley, Shelley

Berman, Howard L.

Berry, Marion

Biggert, Judy

Bilirakis, Michael

Bishop, Rob

Blackburn, Marsha

Blumenauer, Earl

Blunt, Roy

Bonner, Jo

Bono, Mary

Boozman, John

Boswell, Leonard L.

Boyd, Allen

Brady, Robert A.

Brown, Corrine

Brown, Henry E. Jr.

Brown, Sherrod

Brown-Waite, Ginny

Burns, Max

Butterfield, G. K.

Buyer, Steve

Calvert, Ken

Camp, Dave

Capito, Shelley Moore

Capps, Lois

Capuano, Michael E.

Cardin, Benjamin L.

Carson, Brad

Chandler, Ben

Clay, Wm. Lacy

Clyburn, James E.

Coble, Howard

Costello, Jerry F.

Cramer, Robert E. (Bud) Jr.

Crane, Philip M.

Crowley, Joseph

Culberson, John Abney

Cunningham, Randy "Duke"

Davis, Danny K.

Davis, Jo Ann

Davis, Lincoln

Davis, Susan A.

DeFazio, Peter A.

Diaz-Balart, Lincoln

Diaz-Balart, Mario

Dicks, Norman D.

Dingell, John D.

Dooley, Calvin M.

Doolittle, John T.

Doyle, Michael F.

Duncan, John J. Jr.

Ehlers, Vernon J.

Emanuel, Rahm

Emerson, Jo Ann

Engel, Eliot L.

Eshoo, Anna G.

Etheridge, Bob

Evans, Lane

Everett, Terry

Farr, Sam

Fattah, Chaka

Filner, Bob

Foley, Mark

Fossella, Vito

Franks, Trent

Frost, Martin

Gallegly, Elton

Gibbons, Jim

Gingrey, Phil

Gonzalez, Charles A.

Goode, Virgil H. Jr.

Gordon, Bart

Graves, Sam

Green, Gene

Greenwood, James C.

Grijalva, Raúl M.

Gutierrez, Luis V.

Gutknecht, Gil

Hall, Ralph M.

Harman, Jane

Harris, Katherine

Hart, Melissa A.

Hastings, Doc

Hayes, Robin

Hayworth, J. D.

Herger, Wally

Hinchey, Maurice D.

Hinojosa, Rubén

Hobson, David L.

Hoekstra, Peter

Holden, Tim

Honda, Michael M.

Hooley, Darlene

Houghton, Amo

Hoyer, Steny H.

Hulshof, Kenny C.

Hunter, Duncan

Hyde, Henry J.

Isakson, Johnny

Israel, Steve

Issa, Darrell E.

Jefferson, William J.

Jenkins, William L.

Johnson, Eddie Bernice

Johnson, Nancy L.

Johnson, Sam

Johnson, Timothy V.

Jones, Walter B.

Kaptur, Marcy

Kennedy, Mark R.

Kildee, Dale E.

Kind, Ron

Kingston, Jack

Kirk, Mark Steven

Knollenberg, Joe

LaHood, Ray

Lampson, Nick

Lantos, Tom

Larsen, Rick

Larson, John B.

Lewis, Jerry

Lewis, John

Lipinski, William O.

LoBiondo, Frank A.

Lofgren, Zoe

Lucas, Ken

Lynch, Stephen F.

Maloney, Carolyn B.

Manzullo, Donald A.

Marshall, Jim

Matsui, Robert T.

McCarthy, Carolyn

McCarthy, Karen

McCollum, Betty

McCotter, Thaddeus G.

McCrery, Jim

McDermott, Jim

McGovern, James P.

McIntyre, Mike

McKeon, Howard P. "Buck"

Meek, Kendrick B.

Meeks, Gregory W.

Menendez, Robert

Mica, John L.

Millender-McDonald, Juanita

Miller, Candice S.

Miller, George

Miller, Jeff

Mollohan, Alan B.

Moore, Dennis

Moran, James P.

Moran, Jerry

Myrick, Sue Wilkins

Nadler, Jerrold

Nethercutt, George R. Jr.

Ney, Robert W.

Ortiz, Solomon P.

Pastor, Ed

Peterson, John E.

Pombo, Richard W.

Radanovich, George

Rangel, Charles B.

Rehberg, Dennis R.

Renzi, Rick

Reyes, Silvestre

Rodriguez, Ciro D.

Rogers, Harold

Rogers, Mike

Ross, Mike

Royce, Edward R.

Ruppersberger, C. A. Dutch

Rush, Bobby L.

Ryun, Jim

Sánchez, Linda T.

Sanchez, Loretta

Saxton, Jim

Schakowsky, Janice D.

Schiff, Adam B.

Scott, David

Scott, Robert C.

Sensenbrenner, F. James Jr.

Serrano, José E.

Sessions, Pete

Shays, Christopher

Sherman, Brad

Shimkus, John

Shuster, Bill

Simmons, Rob

Simpson, Michael K.

Skelton, Ike

Smith, Adam

Smith, Lamar S.

Solis, Hilda L.

Souder, Mark E.

Stearns, Cliff

Strickland, Ted

Sullivan, John

Sweeney, John E.

Tancredo, Thomas G.

Tanner, John S.

Tauscher, Ellen O.

Taylor, Charles H.

Taylor, Gene

Thompson, Mike

Tiahrt, Todd

Tierney, John F.

Towns, Edolphus

Turner, Michael R.

Udall, Mark

Udall, Tom

Upton, Fred

Walden, Greg

Wamp, Zach

Watson, Diane E.

Weiner, Anthony D.

Weldon, Curt

Weller, Jerry

Wexler, Robert

Whitfield, Ed

Wilson, Joe

Wu, David

Wynn, Albert Russell

Young, C. W. Bill

Young, Don