ECONOMICS REPORT - Trade Dispute Over Boeing and Airbus

ECONOMICS REPORT - Trade Dispute Over Boeing and Airbus
By Mario Ritter

Broadcast: Friday, November 12, 2004

This is Gwen Outen with the VOA Special English Economics Report.

America's biggest exporter is Boeing. It is easy to understand why. Have you ever looked at airplane prices? A big jet plane can cost well over a hundred million dollars.

In fact, trade in civilian¹ planes is so important, it is one of fifteen main areas of negotiation² for the World Trade Organization. It is also a cause of tensions between the United States and the European Union.

The biggest competitor to Boeing is Airbus. E.A.D.S., the European Aeronautic³ Defense⁴ and Space Company, owns eighty percent of Airbus. B.A.E. Systems of Britain owns twenty percent.

Last Friday, the European Union requested talks with American officials over a new tax law for companies in the United States. Congress passed the measure last month, and President Bush signed it. It is called the "American Jobs Creation Act of Two Thousand Four."

Exporters like Boeing lose a tax cut that the World Trade Organization had declared illegal. This makes the European Union happy. But the tax cut will not end for three years. And the law provides other tax cuts for many kinds of industries.

Now the European Union is questioning the legality of the new law. Some observers say the Europeans are reacting to a case brought last month by the United States in the World Trade Organization.

On October sixth, the United States asked the W.T.O. to ban government aid to Airbus. American officials say the European Union unfairly provides loans and other support.

On the same day, the European Union answered by asking the W.T.O. to ban government support to Boeing. The Europeans say Boeing receives several forms of aid that represent illegal subsidies⁵. For example, they say Boeing receives special tax treatment from states where it has factories.

At the root of the problem is a nineteen ninety-two agreement between the United States and the European Union. It ended direct aid for Airbus. But it permitted Airbus to receive help such as long-term loans at low rates of interest. At the time, Airbus was still developing its business. Last year, for the first time, it built more planes than Boeing.

Airbus uses the loans to develop new airplanes. The United States calls this "launch aid." The American trade representative says Airbus received more than six thousand million dollars this way for its newest plane, the huge A-Three-Eighty.

This VOA Special English Economics Report was written by Mario Ritter. This is Gwen Outen.

1 civilian   

adj.平民的，民用的，民众的

参考例句：

• There is no reliable information about civilian casualties.关于平民的伤亡还没有确凿的信息。
• He resigned his commission to take up a civilian job.他辞去军职而从事平民工作。

2 negotiation   

n.谈判，协商

参考例句：

• They closed the deal in sugar after a week of negotiation.经过一星期的谈判，他们的食糖生意成交了。
• The negotiation dragged on until July.谈判一直拖到7月份。

3 aeronautic   

adj.航空（学）的

参考例句：

• Something akin to panic swept the National Aeronautic and Space Agency. 一种近乎恐慌的心情席卷了国家宇航局。 来自辞典例句
• They are widely used in electronic instruments aeronautic instruments etc. 此类轴承在各类电子仪器中得以广泛运用。 来自互联网

4 defense   

n.防御，保卫；[pl.]防务工事；辩护，答辩

参考例句：

• The accused has the right to defense.被告人有权获得辩护。
• The war has impacted the area with military and defense workers.战争使那个地区挤满了军队和防御工程人员。

5 subsidies   

n.补贴，津贴，补助金( subsidy的名词复数 )

参考例句：

• European agriculture ministers failed to break the deadlock over farm subsidies. 欧洲各国农业部长在农业补贴问题上未能打破僵局。
• Agricultural subsidies absorb about half the EU's income. 农业补贴占去了欧盟收入的大约一半。 来自《简明英汉词典》