IV 
108TH CONGRESS 
2D SESSION 
H. CON. RES. 509 
Urging the President to withdraw the United States from the 1992 Agreement 
on Government Support for Civil Aircraft with the European Union 
and immediately file a consultation request, under the Understanding 
on Rules and Procedures Governing the Settlement of Disputes of the 
World Trade Organization, on the matter of injury to, and adverse 
effects on, the commercial aviation industry of the United States. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 4, 2004 
Mr. NETHERCUTT (for himself, Ms. DUNN, and Mr. BLUNT) submitted the 
following concurrent resolution; which was referred to the Committee on 
Ways and Means 
CONCURRENT RESOLUTION 
Urging the President to withdraw the United States from 
the 1992 Agreement on Government Support for Civil 
Aircraft with the European Union and immediately file 
a consultation request, under the Understanding on 
Rules and Procedures Governing the Settlement of Dis-
putes of the World Trade Organization, on the matter 
of injury to, and adverse effects on, the commercial avia-
tion industry of the United States. 
Whereas as recently as 1990, Boeing was the uncontested 
world leader in commercial aviation, and had produced 
over 55 percent of all the jet commercial aircraft ever
•HCON 509 IH 
produced; McDonnell Douglas produced 25 percent, while 
Airbus accounted for only 6 percent; 
Whereas in 1992 the Agreement on Government Support for 
Civil Aircraft was negotiated between the United States 
and the European Community to address the near total 
subsidization of Airbus commercial aircraft development; 
Whereas the agreement stated that no more than 33 percent 
of total aircraft development costs could be borne by the 
respective governments; 
Whereas the agreement ‘‘recogniz[ed] that the disciplines in 
the GATT Agreement on Trade in Civil Aircraft should 
be strengthened with a view to progressively reducing the 
role of government support’’; 
Whereas Boeing has experienced a dramatic downturn in the 
last three years, losing thousands of employees and a sig-
nificant market share; 
Whereas Airbus has continued to increase market share at a 
time of significant turbulence in the commercial airline 
industry as a result of continued government subsidies; 
Whereas the European Union has not abided by the agree-
ment to phase out subsidies; 
Whereas European Union officials have publicly reaffirmed 
their plan to achieve global leadership in aerospace based 
on continued subsidization, noting in ‘‘European Aero-
nautics: A Vision for 2020’’, that ‘‘gradual realization of 
our ambitious vision must be facilitated by an increase in 
public funding. European aeronautics has grown and 
prospered with the support of public funds and this sup-
port must continue if we are to achieve our objective of 
global leadership.’’;
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Whereas the new Airbus A380 is the most subsidized aircraft 
ever, having received more than $6,000,000,000 in direct 
subsidies 
from 
the 
European 
Union, 
including 
$3,700,000,000 in launch aid; 
Whereas in public statements, Airbus representatives have in-
dicated that the company may launch yet another new 
aircraft, which may require billions of dollars of addi-
tional subsidies from the European Union; 
Whereas Airbus has achieved market parity with Boeing; 
therefore the 1992 agreement has outlived its usefulness; 
Whereas the parties to the 1992 agreement noted ‘‘their in-
tention to act without prejudice to their rights and obli-
gations under the GATT and under other multilateral 
agreements negotiated under the auspices of the GATT’’; 
Whereas on a visit to Washington State on August 13, 2004, 
President George W. Bush said ‘‘I’ve instructed U.S. 
Trade Representative Bob Zoellick to inform European 
officials in his September meeting that we think these 
subsidies are unfair and that he should pursue all options 
to end these subsidies—including bringing a WTO case, 
if need be’’; 
Whereas the Boeing Company has more than 150,000 em-
ployees within the United States and has 26,000 sup-
pliers in all 50 States; 
Whereas the United States Trade Representative has strongly 
supported Boeing’s efforts to seek redress in this matter 
and has patiently and appropriately pursued bilateral dia-
logue with the European Union in an attempt to nego-
tiate a new agreement to discipline subsidies; and 
Whereas public statements by the United States Trade Rep-
resentative have made it clear that bilateral consultations
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on the matter of ending commercial aviation subsidies by 
the European Union have been unproductive and that 
further talk is unlikely to resolve the serious injury 
caused to the Boeing company: Now, therefore, be it 
Resolved by the House of Representatives (the Senate 
concurring), That it is the sense of the Congress that— 
(1) the President should direct the United 
States Trade Representative to withdraw the United 
States from the Agreement on Government Support 
for Civil Aircraft that was entered into with the Eu-
ropean Community in 1992; and 
(2) the President should direct the United 
States Trade Representative immediately to file a 
consultation request, under the Understanding on 
Rules and Procedures Governing the Settlement of 
Disputes of the World Trade Organization, on the 
matter of serious injury to the commercial aviation 
industry of the United States. 
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