Bang, ok I am all buy American and I drive an Accord, it was made in Ohio and the EPA considers it domestic due to content, but its still not a Ford of Chevy.
America is all about personal choice and I do not have a problem with consumers buying whatever product they want, but the US government is not a typical consumer.
Ok, bias warning
bias warning
bias warning
bias warning
bias warning
As a Seattleite I was absolutely gob smacked about the Airbus contract. For the past 50 years the system works like this, European and Asian countries support business through direct subsidy while the US supports ours through defense spending. Thats a little simplistic but thats how it worked.
Example, the 707 was derived from the KC-135, which itself employed many of the advances from the KC-97 a derivative of the B-29. The 737s that transport people all over the world every day all have their development roots in tax dollars paid by the Federal government.
As the Europeans traditionally didnt have the same kind of defense budgets as the US they eventually merged their separate businesses one by one into the Airbus consortium. From the beginning in the 70s the consortium was heavily subsidized so that most of the aircraft sold (the original 300s and 310s) were at prices under the manufacturing cost. Where Airbus sold aircraft at a profit, it did so by providing subsidized financing for airlines on the brink of bankruptcy (Eastern, Pan Am, etc.)
I am not saying that one is better than the other, jut that it was a nice arrangement that allowed the WTO to throw out either partys arguments against unfair business practices.
The pending tanker contract with Airbus has upset this balance and should not be allowed. My understanding of the deal is that the A330 derived tanker can be procured at a lower price than the 767 tanker and the performance of the A330 is markedly superior. The kicker is that the reason the A330 is less expensive is that the construction is heavily subsidized by the European member states, why?... to provide manufacturing jobs to EU members.
The thing is, the trickle down of taxable income to workers, contractors and sub-contractors is not factored into the procurement cost. Put simply, if Marcel in Toulouse will work for $20 per hour and Steve in Renton will work for $22 per hour, it still makes sense to give the contract to Steve. Out of Steves $22, Steve will be paying about $1.50 per hour back in income taxes and $3.30 back in payroll taxes (when combined with Boeings Share). So the net cost of having Marcel rather than Steve assemble that landing gear strut assembly is $2.80. Its just good financial sense for the US government to Buy American.