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To: 2CAVTrooper
...what about the 400+ U.S. companies in over 45 states that would benefit from the Northrop Grumman jet? I guess you don't want your tax dollars going to them either?

Not a very substantial U.S. commitment. 50% of the money is going straight to Europe.

And EADs has been majorly busted on its lies before about U.S. business usage. Outside of K-Street lobbyists, their employment in the U.S. is just about nil.

You need to read the most recent post from Tanker War Blog, there is no denying the factual and philosophical realities described:

Tuesday, July 15, 2008

How EADS is Killing the Aerospace Free Market

EADS subsidies do no exist in a vacuum. These subsidies cause a ripple effect throughout the industry.

As a direct result, US aerospace companies lose market share and American aerospace workers lose current and future jobs. Additionally, to compete against these subsidies American companies are forced to cut costs; many times through the use of overseas suppliers, causing further US job loss.

America is not the only country affected. Canada which has the world's fourth largest aerospace industry - generating more than $22.7-billion in 2007 - has also suffered. Unlike the US though, Canada has decided to join EADS in the subsidies game.

The Canadian Government recently announced a $350 million dollar loan to support local owned Bombardier's new C-Series airliner. According to Canadian Business: This is a plane that will reportedly use 20% less fuel than comparable aircraft on the market at a time when airlines around the world are struggling with record high fuel prices. According to Bombardier, it will give the third-largest civil aircraft manufacturer a huge advantage. So why are Canadian taxpayers involved?

Government officials, who hope the loan will earn a “positive” return, say they want Canada to maintain its strong position as an aeronautics supplier. They point to a $250-million auto fund, as if that shows the Harper government has always supported the logic behind corporate handouts (rather than offering another good example of Harper’s growing capacity for pandering).

Simply put, Montreal was competing with Missouri for assembly rights on the C-Series jet. And with buying votes in mind, the Harper government decided to sell its soul to woo Quebec. To do so, it was even willing to risk an international trade war, since the subsidized C-Series will compete with U.S.-based Boeing and Airbus-maker European Aeronautic Defence and Space Company (EADS). Since EADS is the king of subsidies, we don't think they will complain too much. But, the US government and workers in Missouri should be outraged.

Brazil - home to Embraer, another competitor to the future C series - will probably also have some issues with the "loans". But, as Wikipedia points out neither company is a stranger to the subsidies game:

Both Embraer and its main competitor, Bombardier, were engaged in a subsidy dispute in the late 90s and early 2000s. It was found by the World Trade Organization (WTO), in a 2000 ruling, that Embraer has received illegal subsidies from the Government of Brazil. In its ruling, the WTO ordered Brazil to eliminate its Proex export subsidies program, which was found to aid Embraer. In October 19, 2001, the WTO ruled against Canada, just as it had ruled against Embraer, over low interest loans from the Canadian government designed to aid Bombardier in gaining market share.

Just when you think a free market is starting to be established, someone calls for a new round of subsidies and it all falls apart again.

EADs and its business model, if left unchecked, then those 400+ U.S. companies you talk about won't be surviving much longer...
189 posted on 07/16/2008 10:29:06 AM PDT by Paul Ross (Ronald Reagan-1987:"We are always willing to be trade partners but never trade patsies.")
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To: Paul Ross

Oh the “Tanker War Blog”

Not a very credible source since it was created by Boeing.

Funny who they whine about the supposed kickbacks that Airbus recieved yet doesn’t mention the tax breaks and kickbacks that Boeing gets.

All the KC767 contract will do is keep the production line for the obsolete 767 open beyond 2015.

Now you tell me that isn’t a government subsidy.

And what part of “The whole A330/A330F production line is moving here” did you not understand?


211 posted on 07/17/2008 8:38:54 AM PDT by 2CAVTrooper (Democrats: Supporting America's enemies since 1824)
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