By Steven McGuire

Study scholar Steven McGuire examines a tremendous sectoral dispute among the us and the eu neighborhood often called the "Airbus dispute". McGuire explores how the dispute was once settled diplomatically with out each side resorting to adversarial countermeasures. possibly all involved remembered the Boston Tea social gathering.

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

Sample text

56 To remedy this, the Action Programme advocated measures to further rationalize the European industry. 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.

First, Airbus should aim to capture a significant share of the world market for aircraft. The figure most often talked of was 30 per cent. Second, in pursuit of this market share, the consortium would develop a family of aircraft taking note of demands in the marketplace. Essentially Airbus represented a bargain struck between aerospace firms and governments. Governments would back the consortium with money and political support. Airbus, for its part, undertook to develop a commercially credible product.

Airbus, for its part, undertook to develop a commercially credible product. Whereas Airbus would enjoy wide discretion on business matters, its decisionmaking structure nonetheless reveals the close relationship between industry and the four partner governments. Airbus is effectively an organization that builds aircraft, sells them, and assumes responsibility for after-sales support. Airbus does not design aircraft nor fabricate parts. These functions are the responsibility of the partner firms.

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