By Steven McGuire
Learn scholar Steven McGuire examines a big sectoral dispute among the U.S. and the eu group referred to as the "Airbus dispute". McGuire explores how the dispute was once settled diplomatically with out both sides resorting to opposed countermeasures. probably all involved remembered the Boston Tea celebration.
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Additional resources for Airbus Industrie: Conflict and Cooperation in US-EC Trade Relations
American carriers were thus very keen to obtain new equipment. The fact that newer planes offered lower operating costs was a helpful, but not crucial, factor in this regard. Airlines pressed manufacturers like Boeing to develop newer models. This was especially true where jet-engined aircraft were concerned. The prestige associated with operating jet aircraft was such that airlines pushed Boeing and Douglas to develop commercially viable models in the 1950s. 65 In 1978, this all changed. The CAB was abolished and air carriers could now compete on price.
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. 30 This is Cooperation in International Political Economy manifest in the high degree of firm collaboration in the sector. 31 Firm collaboration of this sort can take many forms, including licensed production, joint funding of research and development costs or, more formally, equity swaps or the creation of a jointly held company.
Only after a decade of operation did the Community begin to play a role in the commercial policies of AI. 54 The Commission was also concerned about the growing presence of American producers inside the Community and the report was a defensive attempt to foster European cooperation before the Community's firms could be split off from one another. By 1975, Italy, Belgium and Holland had signed various cooperative agreements with US aerospace firms, mainly for production of US fighter aircraft. 55 Amid a general gloom about the prospects for the sector, the Action Programme identified two reasons to be hopeful about the long-term prospects for the European industry.
Airbus Industrie: Conflict and Cooperation in US-EC Trade Relations by Steven McGuire