Policy Issues in Aerospace Offsets Report of a Workshop (1997) / Chapter Skim
Currently Skimming:
CAN OFFSETS CREATE FOREIGN COMPETITORS?
CAN OFFSETS CREATE FOREIGN COMPETITORS?
Pages 20-26
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 20... ...
Despite the decision not to proceed with this program and the lack of any new domestic Japanese commercial aircraft project, Samuels emphasized that there is no reason to suppose the Japanese cannot develop a successful and competitive aerospace industry. By focusing on developing competitive advantage in the key components of this industry, the Japanese are currently positioning themselves in aerospace to "succeed without really flying." Pointing out that the aircraft industry was targeted by MITI in the early 1970s for development, he noted that the effort is widely considered a failure.
|
From page 21... ...
The Japanese industrial structure for aircraft production is a strength, not a weakness. Manufacturing both turbines and jet engines permits economies of scale and scope within single companies, resulting in among other things considerable dual-use potential in aircraft and nonaircraft applications.
|
From page 22... ...
The launch aid provided by those governments has made them willing to use their considerable leverage to influence potential buyers, especially in other state-controlled markets. Despite multilateral trade agreements intended to remove the exercise of political influence in marketing campaigns, some buyers actually encourage political inducements from governments as part of the competitive package being considered.
|
From page 23... ...
Some countries with a long history of offset arrangements have not been able to use them to effectively transfer their experience to a commercial transport industry. · Attempts to limit mandatory offset programs will not stop the development of new companies and industries, as in South Africa, Russia, and China, which were denied access to Western technology and financial assistance.
|
From page 24... ...
Many elements of Chinese industrial policy incorporate or depend upon trade barriers and other trade distorting elements, many of which are illegal under current international agreements. For instance, despite the 1992 agreement with the U.S.
|
From page 25... ...
China's application to the WTO means pressure could be applied on issues like subsidies, market access, and technology transfer to make it more difficult for the Chinese to carry out their industrial policy and thereby slow the development of a Chinese Airbus. DISCUSSION Secretary Reinsch observed that time remained for questions to the panel.
|
From page 26... ...
The WTO could constrain Chinese industrial policy through its provisions on market access, subsidies, TRIMS, and the large civil aircraft agreements. The Chinese are successful at winning technology transfers because of the perceived size of their market; hence market access is the key card they play.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.