February 2018 - Americans for Fair Skies

Enforcing Open Skies Helps Protect America’s National Security

February 21, 2018 National Security, News, President Trump, Trade Cheating No comments

By: John G. Cotton, Vice Admiral, U.S. Navy, Retired

With increasing global instability, our nation’s ability to respond and adapt to evolving scenarios is more critical than ever.

The ability to effectively and efficiently meet our regional combatant commander’s requirements to deploy troops and supplies without interruption is a fundamental component of our nation’s national security, military readiness, and ability to project both humanitarian assistance and power.

A unique and significant part of our nation’s air mobility resources, especially when rapidly deploying troops and supplies, is the Department of Defense’s partnership with U.S. commercial airlines through the Civil Reserve Air Fleet program (CRAF).

U.S. civil air carriers contract with the CRAF program to provide select aircraft for the deployment of personnel and resources when emergency airlift requirements exceed the capability of military aircraft.

These carriers volunteer their aircraft to the CRAF program, which today comprises more than 450 aircraft that are ready for deployment less than 48 hours after they are called into service.

Participating U.S. commercial airlines maintain a minimum commitment of 30 percent of their CRAF-capable passenger fleet and 15 percent of their CRAF-capable cargo fleet in support of CRAF-related activity. These planes are maintained by the airline and flown by airline employees when called into service.

As a naval aviator and commercial airline pilot, I have developed a profound appreciation for the important role that the U.S. civil air transport industry plays in our nation’s military preparedness.

From the Berlin Airlift to Operation Desert Shield and Operation Iraqi Freedom, U.S. commercial airlines have deployed their airplanes and resources on CRAF missions for decades.

The CRAF program represents a remarkable public-private partnership that has helped to advance American values, protect American national security interests, and support American aid and military efforts across the globe.

However, this crucial partnership is threatened by subsidies undermining U.S. aviation transport trade agreements with the United Arab Emirates (UAE) and State of Qatar. These subsidies are not only an exploitation of American trade policy that threatens an industry vital to the American economy, but they present a threat to U.S. national security and military readiness as well.

These subsidies are being used to finance rapid global expansion by the state-owned airlines of Qatar and the UAE with the aim of driving competitors, including U.S. airlines, out of international markets and off global long-haul routes.

It is these routes requiring long haul aircraft that allow for the support of our military readiness through the CRAF program. We cannot allow unfair trade practices by foreign governments to weaken our military readiness.

The negative impact of these foreign carrier subsidies and their impact on our national security is compounded with the reality that approximately 1,500 aviation jobs are lost for every route ceded or surrendered due to this subsidized competition.

These lost jobs represent not only the aircrew that fly these aircraft in times of crisis with CRAF, but also the maintenance workers and technicians, plus the ramp supervisors and dispatchers who ensure safe global operations.

President Donald Trump has clearly stated that free and fair reciprocal trade is an administration priority, as is ensuring our national security and military readiness. Our Department of State’s recent announcement that the State of Qatar has agreed to match American levels of financial transparency demonstrates the Trump Administration’s commitment to these priorities.

By enforcing our trade agreements, Trump is working to re-establish America’s economic power and improve our military readiness.

The president and his team brought Qatar to the table and reached a deal that, if adhered to, would put an end to Qatar’s trade cheating and level the playing field for American air carriers and their workers.

This would ensure the American companies can fairly compete in the international marketplace, and therefore protects the integrity of the CRAF program. By enforcing our trade agreements, Trump is working to re-establish America’s economic power and improve our military readiness.

The agreement with Qatar is an important first step in the right direction, but the full implications of this development will be more fully realized once the U.S. takes action in regard to the state-owned and state-subsidized airlines of the UAE, which continues to be less transparent and exhibit the same unfair trade practices.

The UAE has two massive state-subsidized airlines that, like Qatar Airways, undercut U.S. airlines in the international marketplace and threaten our military readiness. The recent success of negotiations with Qatar will hopefully influence ongoing discussions with UAE to ensure that Trump can keep America safe and to keep our global trade fair.

Vice Adm. John G. Cotton is a 35-year Navy veteran and last served as chief of Navy Reserve and commander of the Navy Reserve Force in the Pentagon. He is currently a defense and security consultant and a senior fellow at the Joint Forces Staff College.

Published on Lifezette.

Give Trump Credit As U.S. Airlines Gain In Trade Dispute With Mideast Airlines, Delta Exec Says

February 15, 2018 Aviation Jobs, News, President Trump, Trade Cheating No comments

A top Delta Air Lines executive says the U.S. airline industry is seeing gains in its effort to restrict the U.S. growth of three subsidized Middle East carriers, thanks largely to President Trump’s administration.

“We applaud the Trump administration,” said Peter Carter, Delta’s chief legal officer and executive vice president, in an interview. “It has moved mountains in understanding that these subsidies are contrary to Open Skies agreements and need to be addressed.”

Two weeks ago, the Qatari government agreed to annually provide audited financial information for Qatar Airways, a step that could lead to diminished state subsidies. Qatar also said the carrier has no current plans to begin “Fifth Freedom” flights between third countries and the U.S.

Carter called the agreement “a major milestone from our perspective.”

“If [the Qataris] live up to what they said they will do, that will solve the issues,” he said. “If they are not using subsidies and have transparent financials, [Qatar Airways] becomes a full-fledged member of the international airline community, playing on a level playing field.”

U.S. government negotiators have moved on to talks with the government of the United Arab Emirates, seeking similar goals in what would appear to be a tougher setting. Dubai-based Emirates airline already serves New York from Athens and Milan, while Abu Dhabi-based Etihad Airways, struggling financially, depends heavily on subsidies.

“I would hope our government has the same kind of relationship with the UAE that it has with Qatar [and] and can do a deal that would require government-owned airlines to operate without benefit of a subsidy,” Carter said.

In the case of Emirates, Carter said, U.S. airlines do not envision halting the two fifth freedom flights serving Athens and Milan.

“We don’t anticipate anybody dropping anything,” he said. “Our government is not asking any other government to restrict what already exists. This is much more about the future, and in making sure that [Emirates’] huge order [aircraft] book isn’t used to expand fifth freedom flights, whether from Europe or Asia.”

As for Etihad, “I am not sure whether or not the nation of the UAE can justify two carriers of that size and scope,” Carter said. “It looks like Etihad has really existed solely as a result of the largesse of the UAE. Whether it could retool without those subsidies and try to only fly routes that have appropriate demand, I don’t know.

“When European airlines said no to state aid, a number flourished and a number had to shut down.” he said.

Carter spoke in behalf of the Partnership for Open & Fair Skies, a coalition that includes American, Delta, United and seven major airline labor unions and that lobbies for the U.S. to enforce Open Skies agreements with UAE and Qatar.

On Thursday, the partnership is scheduled to release a letter calling for an end to the Open Skies violation and signed by governors from 10 states, including four – Georgia, Michigan, Minnesota and Utah – that have Delta hubs. The letter, sent to Secretary of State Rex Tillerson and Secretary of Transportation Elaine Chao, notes that the Emirates, Etihad and Qatar have received more than $50 billion in government subsidies, in violation of the Open Skies agreements.

‘There’s a buzz out there that’s growing,” Carter said. “People understand that if these carriers are allowed to grow unfettered, it will have a major impact on U.S. airlines.”

The U.S. airline industry offers 19 daily departures to China, but only two daily United departures to India, a similarly sized country, partially because the Middle East carriers have built sizable market shares between the U.S. and India.

For its part, rather than compete with subsidized carriers, Delta ended Amsterdam-Mumbai service in March 2015 and Atlanta-Dubai service in February 2016, eliminating hundreds of employment opportunities in each case. Amsterdam is a hub for Delta joint venture partner KLM.

Carter said Trump “ran on the idea that we must enforce trade agreements to protect U.S. jobs, and this is a shovel ready violation of trade agreements that are being violated, hurting U.S. jobs.”

The Obama administration “did acknowledge that the subsidies were real, but for whatever reason, they were moving very slowly,” perhaps because the administration “was winding down and it is harder to get things done at the end of an administration,” he said.

Published on Forbes.

U.S. Trade Enforcement Mechanisms

February 14, 2018 News, Trade Cheating, US Economy No comments

By: Douglas Hultz-Eakin, Jacqueline Varas

Executive Summary

Trade and other international economic agreements provide broad benefits to the United States and its international trade partners. However, these agreements must be enforced effectively to engender the trust needed to maintain and expand international commerce.
The primary enforcement mechanisms are dispute settlement provisions under specific trade laws and the World Trade Organization, as well as anti-dumping and countervailing duties to counter harm from specific countries and products.
“Safeguard actions” provide import restrictions to protect harmed domestic industries. An interesting test of safeguards are the recently imposed import restrictions on washing machines after Samsung and LG were perceived to have evaded U.S. antidumping duties by moving production from South Korea to China, Vietnam, and Thailand.
Enforcement is also important in other forms of international agreements such as treaties. For example, a test of the future of the Open Skies treaties with Qatar and the United Arab Emirates is the ability to negotiate resolution of the damage to U.S. carriers from government-subsidized international routes by three airlines headquartered in those countries.

Introduction

International economic agreements contribute to the ability of the United States and its allies to build stronger relationships, accomplish shared goals, and reap the economic benefits. A key tool for preserving confidence in these agreements is enforcement mechanisms. Absent these features, agreements would not permit nations to fully experience the advantages of international commerce.

International trade creates significant benefits for the United States. It expands the consumer base and increases demand for U.S. businesses, exposes Americans to lower-priced or higher-quality consumer goods from around the globe, and generates significant productivity gains resulting from international competition and specialization. Trade agreements increase these benefits by reducing trade barriers. They also foster global trust, cooperation, and stabilization.

For trade agreements to be effective, all partners must have confidence that the terms will be upheld. Nations must be assured that their exports to partner countries will not be taxed at higher rates than previously agreed, that they will not face unfair competition from government-subsidized goods in other nations, and that no trade agreement partner will discriminate against them in favor of its own domestic producers. With this confidence intact, producers and consumers can trade freely and experience the economic growth that is spurred by open markets.

In cases where the United States (or another trade agreement partner) believes it is being treated unjustly, there must be a path to adjudicating the complaint. This is also true for other types of agreements in which nations are held accountable. The United States has established several such mechanisms for resolving these types of disputes.

Dispute Settlement

In the realm of trade agreements, there are two main types of dispute resolution mechanisms. The first is Investor-State Dispute Settlement (ISDS), a procedure in which investors can pursue arbitration with governments that discriminate against foreign suppliers. ISDS can also be triggered if governments deny foreign investors their right to due process, seize property without just compensation, or restrict the movement of capital within their borders. Approximately 3,000 agreements worldwide contain some type of ISDS provisions, and the United States is party to 50.

When an ISDS case is brought against a nation’s government, it is not resolved through either nation’s court system. Instead, the parties enter an arbitration process in which the case is decided by a three-member panel of legal experts. While some have criticized this process, it is designed this way to protect investors from potential bias within a country’s courts and from weak legal institutions in developing nations. Furthermore, in the over 20 years in which the United States has been party to ISDS agreements, it has been sued by foreign investors only 16 times. Of those, 10 were decided in favor of the United States and the remaining cases were either settled or dropped. By contrast, U.S. investors have utilized ISDS to challenge foreign governments over 150 times.

ISDS gives companies at home and abroad the security to invest internationally. Without it, foreign and domestic businesses may not have the confidence to expand, participate in trade, or invest in the United States.

The second type of dispute resolution is State-to-State Dispute Settlement (SSDS). If nations have a dispute concerning the interpretation or application of an agreement, they can seek arbitration through SSDS. Like ISDS, trade partners can request the formation of a three-member arbitration panel of representatives from each nation to rule on disputes. The United States has only been involved in eight SSDS cases: five under the U.S.-Canada Free Trade Agreement and three under the North American Free Trade Agreement (NAFTA).

In addition to dispute settlement processes laid out in U.S. trade agreements, the World Trade Organization (WTO) also functions as a mechanism to enforce the rules of global trade. It was formed in 1995 to oversee the global trading system and promote the liberalization of trade barriers, and now has over 160 member nations. Members of the WTO face lower tariffs when exporting to other WTO nations and are afforded protections against unjust trade barriers and discrimination.

For nations that do not wish to utilize dispute settlement mechanisms within individual trade agreements, or for nations that do not have trade agreements with one another, the WTO offers its own dispute settlement procedure. The WTO dispute settlement process resembles that of an international tribunal: Countries engage in initial consultations, hearings, and the creation of a panel to aid in making rulings and recommendations, which are subject to appeal. Final decisions are adopted by the Dispute Settlement Body; a council consisting of representatives of all member governments. While the primary goal of this process is to settle disputes privately through initial consultations, the WTO has an average of 30 dispute settlement panels active each month. Decisions are usually made in a little over one year.

Anti-Dumping and Countervailing Duties

The United States can also try to unilaterally enforce trade rules by imposing anti-dumping and countervailing (AD/CV) duties. These are duties placed on imports that injure U.S. industry, either due to government subsidies or sales at below cost prices. U.S. businesses can petition the Department of Commerce and the U.S. International Trade Commission (USITC) to perform AD/CV investigations if they believe competing products from specific countries are injuring them. If the Department of Commerce finds dumping or subsidization and USITC finds material injury to U.S. industry, duties are applied to specific imports from that country to offset the subsidies or dumping.

It is not always necessary for domestic industry to petition for an investigation to take place. While it is rare, the Department of Commerce may self-initiate AD/CV investigations. This practice has occurred under the Trump Administration, which self-initiated an investigation against Chinese aluminum late last year. However, AD/CV duties may be met with backlash. Canada recently launched a WTO case against the United States for placing AD/CV duties on imports of softwood lumber, and initiated an SSDS process under NAFTA.

Additional Trade Enforcement Mechanisms

Legislation has empowered the United States to seek other enforcement options as well. For instance, the Trade Act of 1974 offers multiple avenues for the United States to challenge trade actions taken by other nations. One example is Section 201 – a statute that authorizes USITC to perform “safeguard investigations.” If USITC finds that a recent surge of imports has seriously injured domestic producers (or there is a threat of serious injury), it can recommend temporary import restrictions. Unlike AD/CV duties, these restrictions would apply to all imports of a specific product, regardless of the country of origin. Furthermore, for USITC to recommend import restrictions following a safeguard investigation, it does not need to find that exporters were engaging in potentially illegal or uncompetitive activity (e.g. receiving government subsidies). It only needs to confirm that the import surge is causing serious injury (or a threat of serious injury) to domestic industry.

Under the Trump Administration, USITC has launched two safeguard investigations. One investigated imports of solar cells and modules , and the second concerned imports of large residential washing machines.

USITC first started investigating washing machine imports after Samsung and LG (both based in South Korea) evaded U.S. antidumping duties resulting from previous AD/CV investigations. Whirlpool alleges the companies moved production from South Korea to China, Vietnam, and Thailand after tariffs were enacted. USITC agreed with Whirlpool that these imports threaten domestic suppliers, and the president responded by enacting tariffs of 20 percent on the first 1.2 million units of washing machine imports. Tariffs on imports above this level will start at 50 percent, but both tariff rates will decline over time.

The other safeguard investigation was in response to increasing competition from solar imports. A U.S.-based manufacturer claimed that increasing solar imports from China, where solar companies are subsidized by the government, causes serious injury to domestic manufacturing. In this case, USITC also concluded that solar imports threaten domestic industry and the president imposed tariffs starting at 30 percent and declining over time.

Section 301 of the Trade Act of 1974 is another example. This statute empowers the U.S. Trade Representative (USTR) to investigate unfair trade practices, which can include trade agreement violations, market access restrictions, legal violations, or discriminatory practices. USTR recently initiated a Section 301 investigation into China for intellectual property theft and improper technology transfer, a practice that U.S. companies have been protesting for years. If USTR confirms these unfair trade practices, it has the authority to impose tariffs or other import restrictions on China. Or, if China agrees, they may also enter into a binding agreement to phase out the practice of intellectual property theft.

These tools enable the United States to enforce the rules of international trade while also protecting the U.S. from discrimination and trade cheating. However, it is important to balance any trade enforcement action pursued by the United States with the possibility of retaliation by other countries, effects on other domestic industries, and potential economic harm to consumers.

Some argue that legislation like the Trade Act of 1974 has become obsolete with the establishment of a multilateral trading regime and the creation of the WTO. They further argue that any action taken against our trade partners should only be pursued through the WTO, and that there is a credible threat of retaliation if the United States acts unilaterally. This is a serious risk: If our enforcement actions are met with trade restrictions from other countries, U.S. exporters could lose market access abroad and U.S. consumers will be faced with higher prices. Furthermore, it would be foolish to believe that trade restrictions imposed by the United States can revive uncompetitive industries or counteract natural shifts in production. However, it is necessary to enforce the rules of trade agreements after they are negotiated and agreed to. If rules are not enforced, unfair trade practices will go unchallenged and it will be difficult to maintain domestic support for trade agreements.

Enforcement in Other International Agreements

Effective enforcement is also important for instilling confidence in other types of international agreements. For instance, the State Department recently opened talks with Qatar (and plan to so with the United Arab Emirates ) about an international agreement called Open Skies. This is one of over 120 U.S. bilateral agreements designed to prevent government intervention in commercial airline travel. Under Open Skies, private airlines in all partner nations have the freedom to make their own decisions about airline routes, the number of flights, the types of aircrafts, and pricing.

Before Open Skies, governments regulated all aspects of airline travel. The Airline Deregulation Act of 1978 deregulated the airline industry in the United States, making way for market forces to spur competition, innovation, and lower prices for consumers. The United States continued this trend in 1992 by establishing the first Open Skies agreement with the Netherlands. We have since entered into Open Skies agreements with partners around the globe in Europe, Africa, the Middle East, the Asia Pacific, and Latin America and the Caribbean.

Open Skies has produced significant benefits for both airline industries and consumers. According to the International Trade Administration (ITA), the U.S.-EU Open Skies Agreement was projected to increase the total number of airline passengers by up to 39 million and increase cargo by up to 170,000 tons. ITA argues that Open Skies also enabled a growth in international trade by improving supply chain efficiency and reducing the distance between manufacturers, suppliers, and customers. Another study found that liberalizing the air services of 320 countries without a current Open Skies agreement would create 24.1 million full time jobs and boost the global economy by $490 billion.

The United States opened diplomatic channels with Qatar (and plans to do so with the United Arab Emirates ) after American, Delta, and United Airlines alleged that government subsidies to state-owned Gulf airlines are forcing competitors out of the market. Specifically, they claim that these subsidies are in violation of Open Skies’ Fair Competition Clause, in which all airlines are allowed a “fair and equal” opportunity to compete. According to the airlines, the governments of Qatar and the United Arab Emirates (UAE) have given over $52 billion in subsidies to Qatar Airways, Etihad Airways, and Emirates.

The current Open Skies dispute is a pertinent example of how enforcement is integral to the success of international agreements. Due to foreign subsidies, U.S. airlines have been forced to terminate their competing routes to Gulf nations.. Without enforcement, airlines in Qatar and the UAE would continue benefitting from these subsidies and driving U.S. competitors out of the market. This is evidenced by the fact that over 80 percent of Gulf Carrier flights to the United States in 2014 were found to be unprofitable. These carriers are willing to operate at a loss in order to capture market share.

The addition of “fifth freedom” flights – flights by an airline between two foreign countries – appears to be another byproduct of Gulf subsidies. In the case of the UAE, Emirates has started offering fifth freedom flights in the U.S.-EU market targeted to consumers not flying to the Gulf. For example, they offer nonstop flights between New York City and Milan as well as between Athens and Newark. By leveraging government subsidies and continuing to add fifth freedom routes, Gulf airlines could conceivably overtake the United States as the global leader in aviation, significantly diminishing the economic prospects of U.S. carriers.

As a result of diplomatic talks, Qatar airways has agreed to commit to greater financial transparency and to halt any fifth freedom flights to the United States. This is an important first step toward ensuring that entities which use government subsidies are held accountable and that competition between the United States and Qatar remains open.

Conclusion

International commerce and cooperation have immense benefits for the United States. Entering into international agreements with other nations is one of the best ways we can build relationships with our allies. However, effective enforcement of these agreements is a key component of their success. To fully benefit from the economic growth that follows open markets or international deregulation, nations must have confidence in the agreements themselves.

Published on American Action Forum.

Strong enforcement of Open Skies agreement with Qatar is good for the U.S.

February 14, 2018 Aviation Jobs, News, Trade Cheating, US Economy No comments

A few weeks ago, President Trump announced an agreement with Qatar that would protect 1.2 million American aviation industry jobs. This announcement shows that the new administration is serious about enforcing our Open Skies agreements and protecting Americans from unfair competition with nations like Qatar.

Transport Daily News has the story:

As part of the recent agreement between the U.S. and Qatar, the partnership said Qatar has committed to operate in a transparent manner by using internationally agreed upon accounting and auditing standards and applying commercial terms to all transactions.

“Qatar and the UAE have both engaged in dishonest accounting methods to distort and conceal the truth about the extent to which the governments have kept the three state-owned airlines afloat,” according to Jenny Beth Martin, president and co-founder of the Tea Party Patriots and the chairman of the Tea Party Patriots Citizens Fund, in an opinion piece published Feb. 9 in The Washington Times. “Thanks to President Trump’s persistence, Qatar is now committing for the first time to provide more transparency in its record-keeping.”

Martin also thinks the U.S.-Qatar agreement will benefit American workers, who have seen “their slipping importance and relevance in Washington as politicians have routinely prioritized Silicon Valley, Wall Street and other crony capitalist interests” over them, she wrote.

And in general, the agreement with Qatar is a win for free market supporters who think “winners and losers in the market should be determined through fair competition — not through heavy-handed government programs or massive government subsidies,” Martin wrote.

We are thrilled that President Trump has taken the initiative to enforce our trade agreement with Qatar to put America first and overturn trade deals that prioritize foreign trade cheaters over 1.2 million American jobs.

Published on Tea Party Patriots.

Open Skies agreement with Qatar foretells strong U.S. enforcement to protect airline industry

February 13, 2018 Aviation Jobs, News, President Trump No comments

The Trump administration’s recently announced agreement with the State of Qatar promises marketplace protections for the 1.2 million American jobs that depend on a strong and stable U.S. aviation industry and indicates that the White House is serious about enforcing its Open Skies agreements.

“The Trump administration has demonstrated its commitment to enforcing our trade agreements and protecting American jobs from unfair competition through its recent agreement with Qatar,” James H. Burnley IV, one of the nation’s foremost authorities on transportation law and policy, told Transportation Today.

The agreement, announced Jan. 30 during a U.S. State Department event featuring Secretary of State Rex Tillerson and Secretary of Defense James Mattis as part of the U.S.-Qatar Strategic Dialogue, is “a set of understandings on civil aviation” aimed at ensuring healthy competition exists in the global aviation sector while maintaining the U.S. Open Skies framework, according to the State Department.

Since 1992, the United States has entered bilateral Open Skies trade agreements with 121 countries to foster airline industry growth and enable passengers to fly from the United States to almost anywhere around the globe, explained Burnley, who is chairman of the Eno Center for Transportation and a partner at the Washington, D.C., law offices of Venable LLP.

“The bilateral treaties were put in place to create an open marketplace where airlines could freely and fairly compete for travelers’ business on their products’ merits, free of market distortions,” wrote Burnley, who served as the U.S. Secretary of Transportation from 1987 to 1989, the Deputy Secretary of Transportation during 1983-1987, and as general counsel of the department in 1983, in a recent article for the Eno Center.

But two of the 121 agreements — which get negotiated by the State Department and the U.S. Department of Transportation — haven’t been working as intended, namely those with the United Arab Emirates (UAE) and Qatar.

The Partnership for Open & Fair Skies has documented more than $25 billion in subsidies that the government of Qatar has provided to its state-owned airline in violation of its Open Skies agreement with the United States. The partnership said it has been working with the U.S. government for almost three years to address the more than $50 billion in rule-breaking subsidies it says the Gulf carriers – the state-owned airlines Emirates, Etihad Airways and Qatar Airways – have received since 2004 from the UAE and Qatar.

Such government subsidies create an uneven playing field that U.S. carriers cannot fairly compete on, according to the airlines and industry stakeholders, and they threaten U.S. jobs supported by the aviation industry. If left unchecked, the Gulf carriers will continue to expand into the United States, putting at risk service to small and medium-sized communities around the country, stakeholders say.

“Fair and free trade is a cornerstone of our great country and essential to ensuring American economic strength and growth,” wrote Burnley, who is also a consultant for American Airlines, a member of the Partnership for Open & Fair Skies.

In fact, for every international route where a U.S. carrier cannot compete and is forced to cede the route to a subsidized Gulf carrier, over 1,500 American jobs are lost, according to the partnership, a coalition that along with American Airlines also includes Delta Air Lines and United Airlines, the Air Line Pilots Association, the Allied Pilots Association, the Southwest Airlines Pilots’ Association, the Association of Professional Flight Attendants, the Association of Flight Attendants-CWA, the Communications Workers of America, and the Airline Division of the International Brotherhood of Teamsters.

As part of the recent agreement between the U.S. and Qatar, the partnership said Qatar has committed to operate in a transparent manner by using internationally agreed upon accounting and auditing standards and applying commercial terms to all transactions.

“Qatar and the UAE have both engaged in dishonest accounting methods to distort and conceal the truth about the extent to which the governments have kept the three state-owned airlines afloat,” according to Jenny Beth Martin, president and co-founder of the Tea Party Patriots and the chairman of the Tea Party Patriots Citizens Fund, in an opinion piece published Feb. 9 in The Washington Times. “Thanks to President Trump’s persistence, Qatar is now committing for the first time to provide more transparency in its record-keeping.”

Martin also thinks the U.S.-Qatar agreement will benefit American workers, who have seen “their slipping importance and relevance in Washington as politicians have routinely prioritized Silicon Valley, Wall Street and other crony capitalist interests” over them, she wrote.

And in general, the agreement with Qatar is a win for free market supporters who think “winners and losers in the market should be determined through fair competition — not through heavy-handed government programs or massive government subsidies,” Martin wrote.

Additionally, under the U.S.-Qatar agreement, Qatar has promised not to introduce any “fifth freedom” passenger flights to the United States, which are flights coming from outside Doha carrying passengers to the United States, according to the Partnership for Open & Fair Skies.

This pact will balance competition for all U.S. carriers, said American Airlines Chairman and CEO Doug Parker in a statement, adding that the Trump administration’s actions “thoughtfully address the illegal subsidies received by Qatar Airways, … support American workers and closer to home, American Airlines’ 120,000 team members.”

Now the focus turns to enforcement of the U.S. Open Skies agreement with the UAE.

When Secretary of State Tillerson announced the U.S.-Qatar agreement last month, he said President Donald Trump “has made this matter a priority, and the outcome we achieved will ensure a level playing field in the global aviation market.”

Martin thinks “the UAE should view this announcement as a new era in treaty enforcement — one in which the United States takes seriously trade violations that disrupt the market and unfairly disadvantage U.S. workers.”

Moving forward, the Partnership for Open & Fair Skies said it intends to work with the Trump administration to ensure Qatar upholds its commitments. The coalition also said it looks forward to working with the Trump administration as it negotiates with the UAE to end its government subsidies to Emirates and Etihad Airways.

Burnley remains confident and told Transportation Today, “I am optimistic that the State Department will push hard to persuade the UAE to end its subsidies for Emirates and Etihad Airways in order to restore fair competition in the global airline industry.”

Published on Transportation Today.

Skies Are Looking Fair

February 9, 2018 News, US Economy No comments

A little more anyway. Last year, I wrote about a battle between U.S. airlines and three aggressive Middle East competitors: The charge from this hemisphere was that the state-owned airlines — Etihad Airways, Emirates, and Qatar Airways — were violating and exploiting the “Open Skies” agreement by spending a whopping $50 billion to undercut the U.S. carriers and unfairly compete via expanded routes and services in the U.S.

Unchecked, the trio’s efforts were projected to result in a major loss of U.S. aviation-related jobs. Well, there seems to be a little good news to share: The association for the embattled U.S. carriers, Partnership for Open and Fair Skies, announced last week that, courtesy of State Department intervention, Qatar would start to end it wicked ways. Years late and a few billion bucks short, sure. But still, things just got a little more fair. So, that makes it one airline down, two to go. Chop chop Rex!

Published on National Review.

US Open Skies Qatar Agreement Helps Make America Great Again

February 9, 2018 Aviation Jobs, News, President Trump, Trade Cheating No comments

From signing tax reform into law, to enforcing our immigration policies to, most recently, enforcing a key international trade agreement, President Trump has already made significant strides with his campaign pledge to “Make America Great Again.”

The slogan “Make America Great Again” was always much more than a catchy phrase for bumper stickers; it was the unifying theme that knit together all of Trump’s policy objectives. And, while making America great again benefits all Americans, there was one primary demographic group with whom the message especially resonated – American workers. American workers have witnessed their slipping importance and relevance in Washington as politicians have routinely prioritized Silicon Valley, Wall Street and other crony capitalist interests over the needs of America’s working families.

But all of that is changing with Mr. Trump in the White House.

Just last week, the president again demonstrated his commitment to America’s workers – this time with the announcement that the White House is requiring Qatar to live up to the terms of the Open Skies agreement.

During the U.S.-Qatar Strategic Dialogue in January, the Trump administration announced that Qatar has agreed to disclose its financials in a more detailed and transparent way than it has previously. Why does this matter? For years, the government of Qatar funneled billions of dollars in the form of subsidies to Qatar Airways in direct violation of the Open Skies agreement with the United States. The Open Skies agreement with Qatar – a bilateral trade deal allowing travel between the two countries – stipulated that neither government could distort the marketplace by providing mass subsidies. But that is exactly what Qatar did for more than a decade, pumping a shocking $25 billion into its state-owned airline.

Qatar has not been alone in its flagrant violation of the Open Skies agreement. The United Arab Emirates has also thumbed its nose at the agreements, choosing to subsidize its two state-owned airlines, Emirates and Etihad Airways.

The effects of this type of government subsidizing are catastrophic. In the short-term, these governments’ interference in the marketplace undercuts U.S. airlines and forces our airlines to compete not with other airlines, but with oil-rich governments – an unequal playing field, if ever there were one. In the long-run, this type of tampering with the marketplace would drive U.S. airlines out of business. American workers were right to be concerned about these violations of the trade agreements, which directly threaten the 1.2 million U.S. jobs that rely on a healthy aviation industry.

Qatar and the UAE have both engaged in dishonest accounting methods to distort and conceal the truth about the extent to which the governments have kept the three state-owned airlines afloat. Thanks to President Trump’s persistence, Qatar is now committing for the first time to provide more transparency in its record-keeping.

The Trump administration’s win with Qatar is a win for everyone who supports the free market and believes winners and losers in the market should be determined through fair competition – not through heavy-handed government programs or massive government subsidies.

The Trump administration’s agreement with Qatar means that one of the most heavily subsidized airline carriers in the world, Qatar Airways, will be forced to play by the rules – a welcome change, indeed.

Perhaps the best part of the new agreement with Qatar is the ripple effect it is likely to have with other countries – most notably the UAE. As Secretary of State Rex Tillerson said in announcing the agreement with Qatar: “The president has made this matter a priority, and the outcome we achieved will ensure a level playing field in the global aviation market.” The UAE should view this announcement as a new era in treaty enforcement – one in which the United States takes seriously trade violations that disrupt the market and unfairly disadvantage U.S. workers.

Previous administrations, especially the Obama administration, treated U.S. workers as mere afterthoughts in policy-making. It is encouraging that the Trump administration has put American workers’ needs front and center in policy decisions. Americans should take note of how Mr. Trump’s Make America Great Again agenda has already transformed U.S. policy-making.

And, for that matter, the United Arab Emirates might want to pay attention to that, too.

Originally found at: The Washington Times

Jobs AND Borders: This Is How The Trump Effect Is Strengthening America

February 7, 2018 National Security, News, President Trump, Trade Cheating No comments

The US military’s ability to deploy troops, strategic assets, and supplies effectively, efficiently, and without interruption around the globe is critical to our national security. Military readiness and the projection of power abroad are key pillars of our nation’s strength. As a former Navy SEAL and CIA paramilitary operations officer, I know firsthand how important reliable airlift is to our ability to meet global mission requirements. We cannot stand for any weakening of our readiness, especially by foreign nations who circumvent our trade laws.

This week, President Donald Trump again demonstrated his commitment to keeping America safe by upholding the importance of military readiness, and took action to ensure that his promise is kept to the American military and American workers. As he said in his first State of the Union address, “The era of economic surrender is totally over.”

During his recent State of the Union address, President Trump stated: “From now on, we expect trading relationships to be fair and very importantly to be reciprocal.” Trump and his administration took action to keep America safe and to keep our trade fair. Using his skills as a negotiator and a dealmaker, the president and his team brought the nation of Qatar, a strategic military ally in the Gulf, to the negotiating table and secured a deal that protects American aviation jobs now and in the future. Qatar and its state-owned airline have been accused of cheating their aviation trade agreements with the United States by distorting the marketplace with subsidies and seat dumping.

This is not only unfair to American workers who must compete against these subsidies; it also puts U.S. national security at risk. President Trump said “no more,” and ensured that a framework was put in place to prevent further harm to America’s economy. Qatar now must abide by international accounting rules, and will no longer fly indirect routes (known as 5th Freedoms flights) to the United States. This will ensure that their marketplace distortion will end or they will face penalties and is critical not only to safeguarding U.S. jobs, but also for ensuring our military is prepared to meet challenges around the globe.

When I served the Navy, our Special Operations Forces regularly deployed around the world — to dozens of countries — and we often relied on our nation’s commercial aviation industry for transportation. I therefore have a profound appreciation for the role the U.S. civil air transport industry plays in our nation’s military preparedness, supplementing the resources of our Defense Department. When Qatar was cheating our trade agreement, they were undercutting our civil air transport partners upon whom our military relies. That put U.S. workers at a disadvantage and put the U.S. companies and workers the military relies on at unacceptable risk. The actions taken by the Trump Administration this week will help to level the playing field for U.S. workers, and safeguard the readiness of our civil air transport partners when the military needs them.

As President Trump said on Tuesday evening: “America has also finally turned the page on decades of unfair trade deals that sacrificed our prosperity and shipped away our companies, our jobs and our nation’s wealth.” President Trump is a man of strong words, followed up with robust action. His work this week to keep America safe and to keep our trade fair is proof of that.

Robert Mitchell is a cybersecurity entrepreneur, former Navy SEAL and CIA Paramilitary Operations Officer.

Originally found at: The Daily Caller