(Washington, D.C.) – Today, U.S. Senator Patty Murray
introduced a bi-partisan amendment to the National Defense Authorization Act
that would require the Pentagon to consider the unfair advantage provided by
illegal subsidies in the competition to replace the Air Force’s aerial
refueling tanker.
After introducing the amendment Murray delivered the
following speech on the Senate floor:
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A
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Mr.
President, today I am joining with Senator Brownback to introduce a bi-partisan
amendment to the Defense Authorization bill that will save and create jobs in
one of the most important sectors in our economy – our aerospace industry.
Our
amendment is about protecting skilled, family-wage jobs…manufacturing jobs and
engineering jobs – jobs with technical skills and expertise that are passed
down from one generation to the next.
Jobs
that not only support families during this difficult economic time, but that
are also helping to keep entire communities above water. Jobs in communities in
Kansas, in Connecticut, in California, and in my home state of Washington. Jobs
that support small businesses, pay mortgages, and create economic opportunity.
Jobs that – right now – are at risk because of illegal subsidies that undercut
workers and create an uneven playing field for America’s aerospace workers.
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What
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Mr.
President, the amendment that Senator Brownback and I are offering today is a
common-sense, straightforward way to protect American aerospace jobs from
unfair European competition. And it is an amendment that specifically targets a
major job-creating project – the Air Force’s aerial refueling tanker contract -
as a place where we can begin to restore fairness for our aerospace workers.
This
amendment says that in awarding that tanker contract the Pentagon must also
consider any unfair competitive advantage aerospace companies have. And there
is no bigger unfair advantage in the world of international aerospace than
Launch Aid.
Mr.
President, as you may know, Launch Aid is direct funding that has been provided
to the European aerospace company Airbus from the Treasuries of European
governments. It’s what supports their factories, their workers, and their
airplanes. It’s what allows them to roll the dice and lose – and what separates
them from American aerospace companies like Boeing – who bet the company on
each new airplane line. In short, it’s what allows them to stack the deck
against American workers.
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WTO’s
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But in
July of this year the World Trade Organization handed down a ruling in a case
the United States brought against the European Union that finally called Launch
Aid what it really is a trade-distorting, job-killing, unfair advantage. In
what was one of our nation’s most important trade cases to date, the WTO ruled
very clearly that launch aid is illegal, it creates an uneven playing
field, it has harmed American workers and American companies, and it needs
to end.
Specifically,
the WTO found that European governments have provided Airbus more than 15
billion Euros in launch aid – subsidizing every model of aircraft ever produced
by Airbus in the last 40 years – including the model they plan to put up for
the tanker competition. They ruled that France, Germany and Spain provided more
than one billion Euros in infrastructure and infrastructure-related grants
between 1989 and 2001 – as well as another billion in share transfers and
equity infusions to airbus. And they ruled that European governments provided
over one billion Euros in funding between 1986 and 2005 for research and
development directed specifically to the development of Airbus aircraft.
In fact, the Lexington Institute estimates that Launch Aid represents over 200
billion in today’s dollars in total subsidies to Airbus.
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And Launch
Aid has had very real consequences. It has created an uphill battle for our
workers and for American aerospace as a whole.
Because
of Launch Aid, our workers are now not only competing against rival companies,
they are competing against the treasuries of European governments. And at the
end of the day, that has meant lost jobs at our American aerospace companies
and suppliers, and in the communities that support them.
Now, Mr.
President, I have been speaking out against Europe’s market-distorting actions
for many years because I understand these subsidies are not only illegal, they
are deeply unfair and anti-competitive. My home state of Washington is home to
much of our country’s aerospace industry, and I know our workers are the best
in the world.
On a
level playing field, they can compete and win against absolutely anyone. But
unfortunately, Airbus and the European Union have refused to allow fair
competition. Instead, they use their
aerospace industry as a government funded jobs program—and they use billions in
illegal launch aid to fund it.
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WTO
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And they
will do just about anything to keep those illegal subsidies in place. We saw
evidence of that in recent days in news on Airbus’ attempts to distract and hide
their job killing subsidies through their retaliatory WTO case against Boeing.
Unfortunately for them, it was a smokescreen that failed. News reports and
analysis have all shown that the two WTO decisions are worlds apart.
In fact,
leading aerospace analyst Loren Thompson wrote after the Boeing ruling that it
“found nothing comparable to European launch aid.” So the most recent WTO
ruling really only reinforces that American aerospace workers have been at a
competitive disadvantage. And that needs to change.
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Amendment
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Mr. President, let me be clear about one thing, our
objective is not to limit competition – our objective is to ensure that
everyone can compete on a level playing-field. Airbus has made clear that they’ll
go to any lengths to hurt our country’s aerospace industry. We need to make
clear that we will take every action to stop them.
Because
this is not only about the future of aerospace. It’s about jobs right now that
will help our economy recover.
In fact,
as we look for ways to stimulate job growth and keep American companies
innovating and growing. We should look no further than this amendment.
But Mr.
President, this amendment is also common-sense policy. It ensures that U.S.
government policy translates to Pentagon policy. Because the fact is that the
U.S. government – through our trade representative – has taken the position
that Airbus subsidies are illegal and unfair. Yet the United States Department
of Defense is ignoring that position as we look to purchase a new tanker fleet.
And that just doesn’t make sense. Not for our country, not for our military,
and certainly not for our workers.
The WTO
made a fair decision—Airbus subsidies are illegal and anti-competitive. Now the
DOD needs to take this ruling into account.
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Time
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When I
talk to Aerospace workers back home in Washington state I want to be able to
tell them that we’ve evened the stakes. I want them to know that their government
is not looking the other way as policies continue to undercut their job
opportunities. And I want them to know that while they are working to secure
our country by producing the best airplanes in the world, their government is
doing everything it can to ensure fair opportunities that will keep them on the
job.
I know
our workers will win a fair and open competition—and I urge DOD to do the right
thing – to make this competition fair and open by considering illegal subsidies
in awarding this critical contract. I urge you all to support this bi-partisan
amendment and to help protect American aerospace jobs.
I yield
the floor.
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