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Forums - General - WTO slaps EU over Airbus....? God I hope so..

Bitmap Frogs said:
Kasz216 said:
Bitmap Frogs said:
Kasz216 said:
Bitmap Frogs said:
Yeah, and it'd be totally kosher if they dumped billions upon billions worth of military contracts like the US does, huh?

Both entities subisidize their respective industrial bases.

Your joking right?  Who else is supposed to do Military work.


The EU takes protectionism to a whole different level then the US.

 

But that's the point, the US government throws billions at boeing the same way the EU does with Airbus.

Each entity uses different means to channel public money towards the aeronautic conglomerates but at the end, both Boeing and Airbus get a nice bottom line boost courtesy from public budgets.

Not at all.  A military contract is something done for the government.  Pay for work.

What the EU was doing was completely different.


The US gave money to Boeing for MILITARY planes.

The EU gave money to Airbus for CIVILIAN planes.

One was for a product of the state... the other was to give Airbus an advantage.

 

But whatever profit Boeing's military projects generate is propping up other divisions as well. 

Heck, the american military is overstocked - the White House and Congress are just throwing candy all over Boeing and other military contractors in exchange for hardware that's gonna rot in warehouses or just used as a toy for military training games. If anything the EU was wiser since they cut the middlemen and just dumped money into Airbus lap without the need to spend additional public budgets into useless hardware. The pork barrel spending such as avionics development programs under NASA budget whos results are then loaned off to boeing are as government subsidy as Airbus' state-backed credit lines.

Anyways this is not gonna change much. It's going to be at least 2-5 years before this gets anywhere near any of the companies budget and the WTO still has to decide on the US government propping up Boeing. 

The fact remains that Airbus makes excellent planes and that the quality of the product is what's hurting Boeing - which by the way can't get their latest plane off the factories yet after several delays. Let's bet, what's gonna happen sooner... this ruling being enforced or the 787 rolling off the manufacturing plant?

Heck, not to mention the US has just dumped billions into propping up two car-makers which under the rules of free market should be already extinct. If free market and all that jazz was to be enforced no American car would be on sale in the States besides Fords.

Sorry, but that's complete bullshit.

Both by the rules of the WTO and by the fact that the US is purchasing something... while the EU is just giving subsidies.

As for weapons being overstocked.  All weapons are overstocked....until they're understocked.  You never know how many bombs and planes your going to need until you have a reason to use them.

There is no denying that the EU is by far the biggest barrier to free trade. 

US protectionism had only ramped up in response to the EU protectionism.


The gap used to be worse... the US is unfortunitly closing... but the EU still is the top of the line when it comes to this.

 

Also... the EU also bailed out it's auto industries... with opel and such.

 

Also the bailouts (US ones) were loans... not subsidies.



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Bitmap Frogs said:
Kasz216 said:

Not at all.  A military contract is something done for the government.  Pay for work.

What the EU was doing was completely different.


The US gave money to Boeing for MILITARY planes.

The EU gave money to Airbus for CIVILIAN planes.

One was for a product of the state... the other was to give Airbus an advantage.

 

But whatever profit Boeing's military projects generate is propping up other divisions as well. 

Heck, the american military is overstocked - the White House and Congress are just throwing candy all over Boeing and other military contractors in exchange for hardware that's gonna rot in warehouses or just used as a toy for military training games. If anything the EU was wiser since they cut the middlemen and just dumped money into Airbus lap without the need to spend additional public budgets into useless hardware. The pork barrel spending such as avionics development programs under NASA budget whos results are then loaned off to boeing are as government subsidy as Airbus' state-backed credit lines.

Anyways this is not gonna change much. It's going to be at least 2-5 years before this gets anywhere near any of the companies budget and the WTO still has to decide on the US government propping up Boeing. 

The fact remains that Airbus makes excellent planes and that the quality of the product is what's hurting Boeing - which by the way can't get their latest plane off the factories yet after several delays. Let's bet, what's gonna happen sooner... this ruling being enforced or the 787 rolling off the manufacturing plant?

Heck, not to mention the US has just dumped billions into propping up two car-makers which under the rules of free market should be already extinct. If free market and all that jazz was to be enforced no American car would be on sale in the States besides Fords.

Your analogy of the government loaning money to the auto makers equating to purchasing products from Boeing is a HORRIBLE comparison, and you know it.

In fact, the similarities between the govt. bailout of GM and Crysler should exactly be likened to what the EU is doing.

In one situation, the government entity is purchasing goods and services from a domestic company. The other is a handout. It should be opposed that the US helped specific auto companies, just like the EU helped Airbus out.

One transaction involves exactly that - an exchange of products for goods and services. The other involves subsidizing failures. I wonder why Airbus is doing better than Boeing, hmm? Maybe because they are getting cash infusions that foster an un-natural advantage, because they did not earn the money legally?



Back from the dead, I'm afraid.

Man the Boeing guys on the Hill will not sleep for days now! Great work protectionist EU! How about giving the boot to more Euro corps!



Kasz216 said:

Sorry, but that's complete bullshit.

Both by the rules of the WTO and by the fact that the US is purchasing something... while the EU is just giving subsidies.

As for weapons being overstocked.  All weapons are overstocked....until they're understocked.  You never know how many bombs and planes your going to need until you have a reason to use them.

There is no denying that the EU is by far the biggest barrier to free trade. 

US protectionism had only ramped up in response to the EU protectionism.


The gap used to be worse... the US is unfortunitly closing... but the EU still is the top of the line when it comes to this.

 

Also... the EU also bailed out it's auto industries... with opel and such.

 

Also the bailouts (US ones) were loans... not subsidies.

 

Two little things to get you right.

1. The EU hasn't bailed out anyone (except for some eastern european national banks), it was their different member countries.

2. Opel was before the crisis 100% American-owned company (GM) and got into trouble due to bad management. They still got their 1,5 billion credit by Germany. Actually they now have wasted another 1,1 billion € because they haven't accepted any buyer yet, but have outsorced 65% of there share to a so called trust-fonds.

 

As for the subsidies - you're right on Airbus, but thing it another way.

 

Why does the EU support Airbus? Because they didn't want a quasi-monopoly from Boeing and you can't create such a giant nowadays (all the development costs etc.) without help from the goverment (in this case the EU, respective some of their members in co-operation).

So actually this was the only way to create a market with competition. Ever thought it that way?



woah,eu hate incoming!!



"They will know heghan belongs to the helghast"

"England expects that everyman will do his duty"

"we shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills; we shall never surrender"

 

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fmc83 said:
Kasz216 said:
 

Sorry, but that's complete bullshit.

Both by the rules of the WTO and by the fact that the US is purchasing something... while the EU is just giving subsidies.

As for weapons being overstocked.  All weapons are overstocked....until they're understocked.  You never know how many bombs and planes your going to need until you have a reason to use them.

There is no denying that the EU is by far the biggest barrier to free trade. 

US protectionism had only ramped up in response to the EU protectionism.


The gap used to be worse... the US is unfortunitly closing... but the EU still is the top of the line when it comes to this.

 

Also... the EU also bailed out it's auto industries... with opel and such.

 

Also the bailouts (US ones) were loans... not subsidies.

 

Two little things to get you right.

1. The EU hasn't bailed out anyone (except for some eastern european national banks), it was their different member countries.

2. Opel was before the crisis 100% American-owned company (GM) and got into trouble due to bad management. They still got their 1,5 billion credit by Germany. Actually they now have wasted another 1,1 billion € because they haven't accepted any buyer yet, but have outsorced 65% of there share to a so called trust-fonds.

 

As for the subsidies - you're right on Airbus, but thing it another way.

 

Why does the EU support Airbus? Because they didn't want a quasi-monopoly from Boeing and you can't create such a giant nowadays (all the development costs etc.) without help from the goverment (in this case the EU, respective some of their members in co-operation).

So actually this was the only way to create a market with competition. Ever thought it that way?

Doesn't matter.  If that was there goal they should buy some shit and follow international law.



Well, we don't know yet, if it was correct under international law. Or have you read the 1000+ pages of the WTO-statement?

I guess, you haven't so the only thing which we could do here is to discuss, if it was a good move to give subisidies to EADS (the Airbus company) or not.

And we should discuss, if it's a good move to attract/ help to build up key industries for your economical area or not.



fmc83 said:
Well, we don't know yet, if it was correct under international law. Or have you read the 1000+ pages of the WTO-statement?

I guess, you haven't so the only thing which we could do here is to discuss, if it was a good move to give subisidies to EADS (the Airbus company) or not.

And we should discuss, if it's a good move to attract/ help to build up key industries for your economical area or not.

Which is protectionism.

You can be pro-protetionism.... that's fine. 

However in the international community that's seen as cheating and unfair to pooerer countries... and the EU is by far the biggest offender.



Kasz216 said:

Which is protectionism.

You can be pro-protetionism.... that's fine. 

However in the international community that's seen as cheating and unfair to pooerer countries... and the EU is by far the biggest offender.


While I agree, that this might be cheating and unfair to poorer countries, I wouldn't say, that the USA is a poorer country. Can you still call it cheating then?

It's not, that the airplane sector is, where we take poor Africans something away. It helps to create more competition => freer market => cheaper prices, in the end bigger markets for everyone AND higher commodity prices for poor countries.

So this is hardly the typical kind of subsidies and except for the USA nobody in the international community would call it cheating, if you think through it.

 

I agree with you, that the EU generally gives away large sums to protect industries and this is most of the times cheating and unfair. But in the Airbus case it's just not. But now as we agreed on the definition, the question from my first posts still stands:

Do think a country (or a country-union) should do nothing to break a monopoly? And if you think it should, shouldn't the WTO agree that they are needed sometimes?



Protectionism can work in favor of the poorer countries, too. A lack of protectionism nearly bankrupted Jamaica's banana business, for instance. The IMF required Jamaica to open up its banana market if they wanted to get IMF money, so Jamaica had to, and then the American banana companies annihilated them, crushing a large part of Jamaica's domestic market

 

The WTO is no benevolent figure, and neither are the IMF and the World Bank. This anti-protectionism is often just an effort to force poorer countries into more submissive positions by default, while institutions like the US and EU continue to do as they more or less please.



Monster Hunter: pissing me off since 2010.