U.S. Department of Commerce seeks details
from EFF on Washington's 7E7 Boeing agreement
OLYMPIA The Evergreen Freedom Foundation (EFF) received
a phone call today from the International
Trade Administration (ITA) division of the U.S. Department of Commerce
asking for details concerning Governor Locke's 7E7
Boeing contract. This follows on the heels of President Bush's comments
at a Seattle Boeing event last Friday, in which the President
addressed Boeing's complaints about the subsidies rival Airbus receives:
"We think these subsidies are unfair and that [U.S. Trade Representative
Robert Zoellick] should pursue all options to end these subsidies, including
bringing a WTO [World Trade Organization] case if need be."
Airbus has indicated that if the U.S. pursues a WTO subsidy complaint,
it may retaliate with its own WTO complaint against Boeing, in part, for
the subsidies granted by Washington state for the 7E7 final assembly.
Earlier this year, researchers at the University of Buffalo's Canada-United
States Trade Center released
studies concluding that Washington's 7E7 agreement violates WTO rules
on government subsidies.
This is particularly troubling considering the state's 7E7 Project Office
Coordinator, Robin Pollard, said in a June
16, 2004, interview concerning WTO trade rules and the Boeing agreement:
"We really haven't looked at it in-depth."
"As this potential trade war heats up, it is important to remember
that the Boeing agreement makes Washington taxpayers liable for any legal
(WTO) challenge to any provision of the contract," warned Jason Mercier,
an EFF budget research analyst.
"Based on ITA's phone call today it appears the Bush administration
is studying its hand prior to instigating any trade actions against Airbus,"
said Mercier. "It's unfortunate that Washington taxpayers have been
placed in the crossfire between Boeing and Airbus due to the failure of
state officials to consider U.S. trade treaties, and the lack of oversight
exercised by the legislature in allowing this deal to move forward."
Contact: Jason Mercier
| Budget Research Analyst | 360.956.3482
At a March 23, 2005, House Appropriations hearing on a bill to gut the voter-approved I-601 spending limit, Rep. Jim McIntire (D) asked a supporter of I-601’s two-third supermajority requirement for the legislature to raise taxes the following question:
"Can you name a time when we [legislators] have actually not just set it [supermajority requirement] aside by majority vote? I mean, this is in many respects a procedural motion that has no bearing. It’s a statutory constraint that cannot constrain any legislature that chooses as a majority to set it aside . . . have we ever used a supermajority [to raise taxes]?"