Posted on 05/14/2019 9:45:36 AM PDT by Kaslin
A law means nothing if it isnt followed. A policy means nothing if it isnt implemented. And a trade deal means nothing if it isnt enforced. This remains true for any administration, and its something the Trump administration has clearly kept in mind as it fights for fairer trade for American workers. And that attitude has paid off for the American people just this week, we learned that the U.S. is successfully shrinking our trade gap with China following a concerted effort by the president.
President Trumps commitment to fair trade enforcement is now being put to the test thanks to long-standing trade violations that threaten the American airline industry. For over a decade, two Middle Eastern countries Qatar and the United Arab Emirates have provided tens of billions of dollars to their government-owned airlines, in violation of bilateral Open Skies trade agreements with the United States. These subsidies have allowed Qatar Airways, Emirates and Etihad Airways to rapidly expand, without regard for profit or economic realities, in an effort to dominate global aviation. American carriers and other rule-abiding airlines, which cant count on unlimited backing from government owners, cannot reasonably compete on a playing field skewed by Gulf state subsidies. Economists estimate that for every long-haul international route cancelled or foregone by a U.S. airline due to Gulf carrier competition, 1,500 American jobs are lost.
While the Obama administration failed to defend American jobs and businesses, President Trump made clear that his administration would not stand for these trade violations. Last year, the U.S. government successfully negotiated two new agreements with Qatar and the UAE that were meant to put a stop to unfair competition, create new financial transparency and stop the launch of subsidy-backed fifth freedom routes, which are flights that go directly between the U.S. and a third country without stopping in an airlines home country in between.
Americas airline workers showed their thanks to President Trump for taking action, but this wasnt enough. Qatar Airways has now purchased a large stake in the Italian airline Meridiana, rebranded it as Air Italy with self-described plans to massively expand its operations, and is using it to circumvent last years agreement and continue to launch subsidy-backed routes to the United States. Just last month, Air Italy began two new seasonal flights to California, and will likely continue pricing below economic costs. Cheap flights may sound good in the short term, but the long-term harm to American industry and jobs is incalculable not to mention the damage to our reputation if we let other countries break their agreements with the U.S.
While the Obama administration failed to defend American jobs and businesses, President Trump made clear that his administration would not stand for these trade violations. Last year, the U.S. government successfully negotiated two new agreements with Qatar and the UAE that were meant to put a stop to unfair competition, create new financial transparency and stop the launch of subsidy-backed fifth freedom routes, which are flights that go directly between the U.S. and a third country without stopping in an airlines home country in between.
Americas airline workers showed their thanks to President Trump for taking action, but this wasnt enough. Qatar Airways has now purchased a large stake in the Italian airline Meridiana, rebranded it as Air Italy with self-described plans to massively expand its operations, and is using it to circumvent last years agreement and continue to launch subsidy-backed routes to the United States. Just last month, Air Italy began two new seasonal flights to California, and will likely continue pricing below economic costs. Cheap flights may sound good in the short term, but the long-term harm to American industry and jobs is incalculable not to mention the damage to our reputation if we let other countries break their agreements with the U.S.
Fortunately, Secretary of State Mike Pompeo made clear that the administration recognizes this threat, telling Congress that the administration is looking very closely at Qatars investment in Air Italy. And members of Congress from both parties are keeping this issue in the spotlight with letters to President Trump and an upcoming Senate hearing.
With over 1.2 million American jobs depending on a successful U.S. airline industry, these trade violations simply wont stand. If the president hopes to continue his record of success on trade, he must hold Qatar accountable, demand an end to its unfair behavior regarding Air Italy, and show Americas workers that we wont let our trade deals go unenforced.
James H. Burnley IV served as the 9th U.S. Secretary of Transportation under President Ronald Reagan from 1987 to 1989. He is a partner at Venable LLP and an adviser to American Airlines.
Wow! A universal truth in the very first sentence. I love it.
And my new tagline.
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