the Aerospace Team
U.S. Department of Commerce:
The Office of Aerospace
and Automotive Industries, Aerospace Team is part of the International
Trade Administration, a bureau of the U.S. Department of Commerce. The
Aerospace Team monitors the implementation of trade agreements that
are specific to the aerospace industry; identifies constraints on the
trade performance of the U.S. aerospace industry and recommends ways
to neutralize such constraints; monitors and describes the economic
and technological health of the aerospace industry in the U.S. as well
as worldwide; provides advice, counsel and support for the international
marketing efforts of aerospace firms.
Team seeks to:
1. Develop and
recommend U.S. trade policy positions and negotiating postures for multilateral
and bilateral aerospace discussions/negotiations related to the aerospace
2. Provide information and analysis to U.S. exporters, policy makers
and trade negotiators.
3. Participate as members of sector-specific trade negotiating teams.
4. Ensure that U.S. policy encourages the competitiveness of the U.S.
The Aerospace Team
is engaged in a number of trade policy initiatives which are beneficial
to all U.S. aerospace companies. These initiatives serve to ensure that
the U.S. aerospace industry is safeguarded from unfair foreign trading
practices (i.e., foreign government supports/subsidies to their aircraft
and parts industries, market disruptive behavior by non-market economies
in the space launch sector).
Throughout the initiatives
listed below, U.S. aerospace companies are thoroughly briefed and solicited
for their views.
WTO Agreement on
Trade in Civil Aircraft - The Aircraft Agreement, negotiated during
the GATT Tokyo Round of multilateral trade negotiations, eliminated
all tariffs on civil aircraft products and reduced the effects of non-tariff
barriers in those countries which signed the Agreement.
Number of Signatories to the Aircraft Agreement - The Aerospace Team
identifies countries that are participants or potential participants
in the globalization of the world's aerospace industry (i.e., Brazil,
Indonesia) and encourages them to sign the agreement to abide by consensus.
Agreement on Subsidies and Countervailing Measures - The Aerospace Team
monitors developments in major aerospace markets overseas to ensure
that our trading partners comply with the strengthened disciplines on
subsidies that were developed in the Uruguay Round of trade negotiations.
OECD Large Aircraft
Sector Understanding (LASU) under the Arrangement on Official Export
Credit Financing - The LASU has been successful in disciplining government
financing for large commercial aircraft. The Aerospace Team monitors
the function of the LASU to identify areas where additional work is
required, recommending negotiating initiatives to the Department of
the Treasury. For example, the use of official export credit financing
in leasing transactions is not addressed in the current agreement. The
increasing use of leases will require some changes in the administration
of official export credit financing. In the meantime, negotiations are
at an impasse on the issue of "home market" financing between
the United States and the European Union.
U.S. - Russia Aerospace
Equipment Business Development Committee (BDC) - The subgroup facilitates
and fosters aerospace trade and investment between the United States
and Russia. The Aerospace Team works through the subgroup to provide
defense conversion assistance, commercial opportunities, facilitate
contacts among potential business partners, sponsor programs, and eliminate
obstacles to the successful conclusion of business negotiations.
The Aviation and
Airport Infrastructure Sub-Committee under the Joint Commission on Commerce
and Trade (JCCT) - China - The JCCT develops trade opportunities for
U.S. aerospace companies in the Chinese Market (i.e., air traffic control
equipment, aircraft and aircraft parts).
Advocacy - In cooperation
with the Department's Advocacy Center, the aerospace advocacy program
provides timely responses to the needs of U.S. aerospace firms in international
- The Aerospace Team maintains close liaison with U.S. aerospace firms
to focus and construct programs that enhance the U.S. industry's competitiveness
- The Aerospace Team provides business counseling to help companies
penetrate new markets, increase market share, obtain country market
information, and/or make contacts overseas.