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Senate Proceeding on Jul 29th, 2010 :: 5:27:10 to 5:37:30
Total video length: 10 hours 27 minutes Stream Tools: Stream Overview | Edit Time

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Sam Brownback

5:27:05 to 5:27:25( Edit History Discussion )

Sam Brownback: different administration, pursued airbus' subsidization and we won this case, multibillion dollar trade subsy case that we won taking market share inhe large commercial airliner business in an illegal fashion, illegally subsidized

Sam Brownback

5:27:10 to 5:37:30( Edit History Discussion )
Speech By: Sam Brownback

Sam Brownback

5:27:26 to 5:27:46( Edit History Discussion )

Sam Brownback: and now we'll go into the damage phase and the remedies phase of this. but we won the case and it's a massive case. the reason that i'm raising this to my colleagues is a similar setting is starting in the small aircraft market, jen aviation -- general aviation market. it

Sam Brownback

5:27:47 to 5:28:08( Edit History Discussion )

Sam Brownback: business, this is a u.s. homegrown business centered in my state in kansa it is a great business, it provides connection throughout this country and increasingly throughout the world. there are 5,000 airports in the united states. only 500 have commercial service.

Sam Brownback

5:28:09 to 5:28:29( Edit History Discussion )

Sam Brownback: the other 4,500 you ride a bike to if you don't have an airplane. they are mid--level sales, engineers, they make connections in between the vario properties that the company operates. they make them much more efficient within that business. but what is taking place today is this homegrown general

Sam Brownback

5:28:30 to 5:28:50( Edit History Discussion )

Sam Brownback: aviation business in the united states that is a major exporter recently cited by a major study by brookings that this is a major export cluster, 40% export that we do in the general aviation, the small business jet airplane market is now under

Sam Brownback

5:28:51 to 5:29:12( Edit History Discussion )

Sam Brownback: targeted attack by other countries to take this business away from the united states the same way that airbus subsidized by the european union took that market share away from the united states. instead of going after the big airliners, they're going after the small jets, small airplanes and several countries are ling up to do this.

Sam Brownback

5:29:13 to 5:29:34( Edit History Discussion )

Sam Brownback: this is one of the major challenges facing general aviation domesticallys foreign countries targeting this industry which has a high wage, high skill manufacturing sets of jobs. various governors governments around the world are ling up and preparing programs with various means of support for their domestic aircraft induries and research and

Sam Brownback

5:29:35 to 5:29:56( Edit History Discussion )

Sam Brownback: development sales and export financing as well as certification of new aircraft very similar to what took place in airbus taking over that market share that they did. now, in that situation you had large companies fighting against government operation. and they had, in some cases, deep enough pocketbooks to last,

Sam Brownback

5:29:57 to 5:30:18( Edit History Discussion )

Sam Brownback: like boeing did. now lockheed martin, mcdonnell douglas didn't and we're driven out of the field. my great fear in targeting of the general aviation of the smaller business aircraft market is that they're going to have countries behind them, companies in those countries are going to push for it and they're going to take the market share away and they're going to be aggressive

Sam Brownback

5:30:19 to 5:30:40( Edit History Discussion )

Sam Brownback: and it's going to happen rapidly if we don't get out in front o it and stop these other countries from doing the subsidization. it is absolutely critical that we engage in competion now. that we stop it now, that we start the investigation of foreign governments illegal subsidization in the general aviation market now and that we

Sam Brownback

5:30:41 to 5:31:03( Edit History Discussion )

Sam Brownback: get on top of this now before it goes on 10, 20 years like it did in airbus and u.s. businesses -- they get driven out of the field. one country in particular i want to draw attention to and one country in particular. the country is brazil. it made a strong commitment to expanding its presence in this market the general aviation

Sam Brownback

5:31:04 to 5:31:24( Edit History Discussion )

Sam Brownback: market through embry air, one of the largest exporter. embry publicly stated its goal in 200 to become -- quote -- "a major player in the business aviation market by 2015." that was their 2005 statement, 2015, five years away.

Sam Brownback

5:31:25 to 5:31:45( Edit History Discussion )

Sam Brownback: how have they done? after entering the business aviation market in 2002, embry has been involved in a massive program to -- for aircraft in this market segment. they have rolled out a full product line of new jets

Sam Brownback

5:31:46 to 5:32:06( Edit History Discussion )

Sam Brownback: including the phenomenon 100 and 300, legacy 600. beyond the staggering number of models that embry introduced, two years, it is now responsible for 14% of all global sales of business aircraft and, again, this is a u.s. homegrown business, this business didn't

Sam Brownback

5:32:07 to 5:32:27( Edit History Discussion )

Sam Brownback: exist outside the united states before we started it many years ago. it's headquartered in my state in wichita, air capital of the world. but what they have done since 2002 is get 14% of the market share from a start position -- cold start position, quite an unbelievable feat for a company

Sam Brownback

5:32:28 to 5:32:48( Edit History Discussion )

Sam Brownback: that has been in manufacturing business aviation for a little over seven years. that is phenomenal. phenomenal. it also, i suspect, deeply suspect was done illegally and subsidized by the government. at the same time, ambrey

Sam Brownback

5:33:10 to 5:33:30( Edit History Discussion )

Sam Brownback: tell you from my state, we have had huge job losses in sales in the business aviation field since 2008. we had a niece period of time going into 2007. we were up to 40% international sales. that has helped us a lot in the international sales because previously we sold 90%, 95% of

Sam Brownback

5:33:31 to 5:33:53( Edit History Discussion )

Sam Brownback: the market domestically. nice expansion in the international marketplace, but since that period of time, really 2007 moving on forward, this has been a downward market, and in that period of time, embrey air has moved up to 14% and introduced a whole new

Sam Brownback

5:33:54 to 5:34:16( Edit History Discussion )

Sam Brownback: cross-section of planes. to me, and i have seen similar signs in the past that were later proven to be the result o of the e.u. this activity by embry air byst government on market control does not seem possible without creative and government support across the board. it does not see possible to have done that in this market

Sam Brownback

5:34:17 to 5:34:39( Edit History Discussion )

Sam Brownback: condition, in this atmosphere in that short a period of time by a new start-up company that hasn't been making these aircraft for more than seven years. but that was also a similar sort of trajectory that airbus went on. when it had heavy government subsidization, heavy and creative government subsidization to go into a marketplace that hadn't even

Sam Brownback

5:35:02 to 5:35:23( Edit History Discussion )

Sam Brownback: investigation into the subsidization, what i believe is illegal subsidization, but let's get the factual setting set. we now see what they have accomplished in this period of time, i believe through illegal subsidization. we need to get now the international trade commission, the u.s. trade representative's office, focus on what needs to take place here.

Sam Brownback

5:35:24 to 5:35:44( Edit History Discussion )

Sam Brownback: but otherwise, what will happen is embry air will continue to grow in its market presence, taking over more and more of this global and u.s. domestic market. it wl drive weaker incumbents out of the field in the united states, ahpen in the large -- as happened in the large aviation market. we will lose export share t. will encourage --

Sam Brownback

5:35:45 to 5:36:06( Edit History Discussion )

Sam Brownback: it will encourage other entrants, such as the chinese, to come into this marketplace, possibly the japanese as well, on subsidized ways, illegally, government-subsidized ways, into this marketplace that has a high-wage, high-skill manufacturing job that we should doing in the united states and not be allowed -- not allow to be stolen by foreign treasuries to other places

Sam Brownback

5:36:07 to 5:36:27( Edit History Discussion )

Sam Brownback: around the world. we've got to do thisget in it before they do. what airbus and the e.u. did to the large market, which is to drive lockheed martin, mcdonald doug louse out of th the -- mcdonnell douglas out of the business completely. and we're sitting here saying

Sam Brownback

5:36:28 to 5:36:50( Edit History Discussion )

Sam Brownback: well, we think there might b there's a pro, there might be a -- a problem, there might be a problem. there's a huge subsidization by the europeans, but we didn't get on top oft before two u.s. companies were completely driven out of the business. let's not let this be repeated. as my colleague from kentucky loves to say, there's no education in the second kick of

Sam Brownback

5:36:51 to 5:37:12( Edit History Discussion )

Sam Brownback: a mule. we have seen this play before. we have seen countries go after key market segments in the united states, and if you're not aggressive in confronting it, it goes on until you do. i would hope my colleagues would look at this. i -- as i say, there's two

Sam Brownback

5:37:13 to 5:37:31( Edit History Discussion )

Sam Brownback: actions we can take near term with the international trade commission starting the investigation in this particular case, or the u.s. trade representative's office, starting to raise this issue, particularly with the brazilians but also other countries raising this, and now is the time to do it, not five years later after

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