Amid increasing speculation that EADS North America will win the U.S. Air Force’s $35 billion aerial refueling tanker contract, Boeing-friendly senators Wednesday called for forcing the Pentagon to account for illegal subsidies in the competition.
A World Trade Organization panel ruled
earlier this year that European nations illegally subsidized Airbus
programs, including the A330, which is the basis for EADS North
America’s proposed KC-45 tanker. A separate WTO panel found
in a confidential interim ruling that Boeing also received illegal
subsidies, although those were reportedly much less than those that
Airbus got.
“The simple truth is that we won’t have an even playing field in this
competition until the impact of illegal foreign subsidies are factored
in,” Sen. Patty Murray, D-Wash., said in a news release. “The U.S.
government and the World Trade Organization have both come to the
conclusion that these subsidies give Airbus a competitive advantage and
that they have cost us American jobs. Especially in this economy, the
Pentagon can’t ignore these subsidies that leave American aerospace
workers fighting an uphill battle.”
Sen. Maria Cantwell, D-Wash., said: “We cannot have a foreign
subsidized plane low-balling its bid in a competition for one of the
largest defense contracts in U.S. history.”
The Washington Democrats called for including a requirement to
consider subsidies in the defense budget under consideration. Sens. Sam
Brownback and Pat Roberts, both R-Kan., Kit Bond, R-Mo., and Debbie
Stabenow, D-Mich. also signed the letter to Senate Armed Services
Chairman Carl Levin.
Here’s the text of the letter:
Chairman Levin:
We write to express our strong support for language to ensure a fair
competition for the KC-X Air Force tanker contract in the Fiscal Year
2011 National Defense Authorization Act. Especially in this economic
climate, Congress should act to protect American aerospace jobs from
unfair competition and to restore fairness for our aerospace workers.
In particular, we urge you to include section 848 of H.R. 5136, which
was passed by the House of Representatives on May 28, 2010. This
section requires the Department of Defense to take into account the
impact of illegal subsidies on the KC-X tanker competition. Section 848
requires the Department of Defense, in awarding that tanker contract,
to consider any unfair competitive advantage aerospace companies may
possess.
The House of Representatives has already demonstrated strong
bipartisan support for this language. Section 848 passed in the House
as an amendment to the National Defense Authorization Act by a vote of
410-8. We strongly urge you to retain section 848 in any final version
of the Fiscal Year 2011 National Defense Authorization Act.
Thank you for your continuing work on behalf of the men and women of
the U.S. Armed Forces. We look forward to working with you in the days
ahead to pass a defense authorization bill in this Congress that ensures
a level playing field for the Air Force KC-X tanker contract.
– SeattlePI.com
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