Airbus Industrie: Conflict and Cooperation in US-EC Trade by Steven McGuire

By Steven McGuire

Examine pupil Steven McGuire examines a big sectoral dispute among the us and the eu neighborhood often called the "Airbus dispute". McGuire explores how the dispute used to be settled diplomatically with no both sides resorting to adverse countermeasures. maybe all involved remembered the Boston Tea celebration.

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Additional resources for Airbus Industrie: Conflict and Cooperation in US-EC Trade Relations

Example text

57 This was taken to mean that all major policy decisions, including approval of aircraft programmes, would go through the Council via the Commission. 58 While Community control over the industry would be achieved through the most decentralized means possible, it was clear that national governments would be relieved of the responsibility for managing their aerospace industries. 60 With respect to the structure of the industry Airbus Industrie was offered as a possible model for further cooperative efforts.

In sum, at least until the 1970s, the US aircraft manufacturing industry enjoyed numerous advantages over any foreign rival. Not the least of these was the existence of government policies highly supportive of the industry. The American government did subsidize the development of commercial transports through various research and development programmes. It also helped the manufacturers by maintaining a market for their products by the regulation of airline fares through the Civil Aeronautics Board.

Work on trade policy formulation and that on globalization do point to ways in which we can think about the likely trade preferences of firms. First, it may be that a firm's dependence on international markets for sales affects its trade preferences. Second, it may be that a highly globalized industry structure likewise influences firms' attitudes toward trade questions. Finally, important buyers of products like aircraft may have considerable influence over trade policy formulation. 29 Firm's trade preferences can develop in other ways, however.

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