Click Like to Follow Fliegerfaust Facebook page to get the News ASAP / Share to share this post now.

21:00 - October 4, 2017 - Quebec, Canada

This recent op-ed piece was written by a non-journalist who has no political ties or affiliations to either Bombardier or Boeing. The author brings up some very interesting historical reasons to justify throwing out the current Boeing trade complaint immediately. I encourage my readers to examine the evidence and decide for themselves if this made sense when it was first written and signed, and if it still makes sense today.

My personal opinion matches that of the author. It would be a very different world today if this agreement was not protecting us for all these years, and it will be a very different world tomorrow if the United States allows itsmostly heavily pampered corporation to break international agreements and harm all nations for its own selfish benefit.

Thank you very much Flintspark for pointing out what everyone involved seems to be either ignoring or forgetting, and for reminding us just how much is at stake.

Here it is below...
Sylvain Faust

...

US CSeries Tariffs break plurilateral 32 nation WTO agreement that US and CA signed !

When the US threatens to impose tariffs on the importing of civil aircraft they are in fact tearing up a World Trade Organization agreement which for almost 40 years has prevented chaos from overtaking the international air travel and shipping industries.

The USA and Canada, along with 30 other nations, have long since agreed that government support for manufacturers of civil aircraft will never be considered an illegal subsidy, instead it is clearly defined as a necessity. All aircraft manufacturers have been supported and subsidized by their respective governments, there are no exceptions because designing and building aircraft is such an enormous endeavor it is impossible without that level of support. They also agreed that no nation will ever impose any tariffs or duties on civil aircraft, aircraft parts or their support and maintenance equipment, nor impede international trade of civil aircraft in any manner or for any reason.

Unlike toasters or teapots or telephones, civil aircraft are vital to the entire world and as such are totally exempt from the kind of protectionist entanglements the US is presently considering. Civil aircraft manufacturers should never have to contend with the likes of Boeing, who have always wanted to be a monopoly. Boeing admitted in their recent complaint that they wish Airbus had never happened. Boeing's motivation is to prevent another Airbus from happening, the current duopoly was forced on them against their wishes, and they intend to distort the US trade laws to their advantage and prevent any further competition. Boeing is deliberately ignoring the fact that the world has already agreed that this sort of corporate greed in the field of civil aircraft manufacturing harms everyone, and that is why this exact thing was forbidden decades ago.

Below is an overview of the WTO Agreement on Trade in Civil Aircraft, and a link to the WTO source. Perhaps the commercial airlines have not been plagued by endless and pointless tariffs and duties on aircraft imports, and perhaps the preceding decades have seen tremendous growth in global air travel and shipping, all thanks to this type of collaborative effort to work out mutually beneficial understandings which prevent the stifling effects of protectionist measures. It is quite evident that this type of global understanding has protected a vital element of our modern world and for decades this has been a positive influence benefiting all nations.

Instead of opening Pandora's box and unleashing the chaos of tit-for-tat tariffs on civil aircraft, it is time to re-examine these gems from the past to recall the words of our predecessors. It is time to remember that what matters most is what is best for the entire world.

------------------------------------

The Agreement on Trade in Civil Aircraft (https://www.wto.org/english/docs_e/legal_e/air-79_e.htm) achieves the expansion and ever-greater liberalization of world trade through the progressive dismantling of obstacles to trade and the improvement of the international framework for the conduct of world trade.

The US and Canada, along with 30 other nations, signed this agreement to achieve maximum freedom of world trade in civil aircraft, parts and related equipment, including elimination of duties, and to the fullest extent possible, the reduction or elimination of trade restricting or distorting effects.

The 32 signatory nations crafted the Agreement on Trade in Civil Aircraft to encourage the continued technological development of the aeronautical industry on a world-wide basis, and to provide fair and equal competitive opportunities for their civil aircraft activities and for their producers to participate in the expansion of the world civil aircraft market.

Being mindful of the importance of the civil aircraft sector to their overall mutual economic and trade interests, and recognizing it is a particularly important component of economic and industrial policy, the 32 signatory nations seek to eliminate adverse effects on trade in civil aircraft resulting from governmental support in civil aircraft development, production, and marketing while recognizing that such governmental support, of itself, would not be deemed a distortion of trade.

Desiring that their civil aircraft activities operate on a commercially competitive basis, and recognizing that government-industry relationships differ widely among them, the 32 signatory nations established an international framework governing conduct of trade in civil aircraft.

The 32 signatory nations agree to eliminate by 1 January 1980 all customs duties and other charges of any kind levied on the importation of civil aircraft, including the parts and equipment used in the course of its manufacture, repair, maintenance, rebuilding, modification or conversion.

Each Signatory shall adopt or adapt an end-use system of customs administration to give effect to its obligations listed above, and ensure that its end-use system provides duty-free or duty-exempt treatment that is comparable to the treatment provided by other Signatories and is not an impediment to trade.

Source: WTO The Agreement on Trade in Civil Aircraft (https://www.wto.org/english/docs_e/legal_e/air-79_e.htm)

PDF: https://www.wto.org/english/docs_e/legal_e/air-79_e.pdf