Brownback, Tiahrt Introduce Fair Defense Competition Act

Press Release

U.S. Senator Sam Brownback (R-KS) and Representative Todd Tiahrt (R-KS) today held a bi-partisan press conference announcing the introduction of the bi-cameral Fair Defense Competition Act that would require the Department of Defense to consider World Trade Organization decisions for military acquisitions.

Brownback said, "The bipartisan legislation introduced today would require the Defense Department to do the right thing and account for illegal subsidies that distort competition. The DoD has chosen to ignore the effects of illegal subsidies, even though it acknowledges that nothing in the law stops DoD from taking into consideration such subsidies. This bill will ensure DoD runs a fair tanker competition and that no bidder is rewarded for benefitting from illegal government support."

The WTO has ruled that European governments have illegally subsidized Airbus, a competitor in the KC-X aerial refueling tanker competition, creating an unfair competitive advantage for U.S. workers. The legislation would apply to the current bidding process for the KC-X tanker competition.

Specifically, the Fair Defense Competition Act would require the Pentagon to add the cost of illegal subsidies onto the price of a competitor's bid proposal pursuant to a ruling by the WTO. This would help level the playing field for American workers. It is estimated by the U.S. Trade Representative that Airbus has received over $5 billion in illegal subsidies from European governments.

Tiahrt said, "Since the Obama administration has chosen to elevate the interests of European workers above those of American workers, Congress needs to take action and correct the situation. The administration should acknowledge the illegal dealings of foreign governments in the tanker competition as well as future acquisitions. Hardworking Americans deserve a fair and level playing field on which to compete and should not be pushed out of the competition because of foreign lobbying. We need an American tanker built by an American company with American workers. Even more so, we should never outsource a vital national security component."

Senator Patty Murray, lead Senate Democrat co-sponsor, said, "On a level playing field, American workers can compete and win against anyone. Unfortunately, as the WTO's recent ruling on Airbus shows, illegal subsidies have created an uphill battle for our workers and American aerospace. Our workers are now not only competing against rival companies, they are competing against the treasuries of European governments. It's time for the Pentagon to consider WTO rulings on illegal subsidies when making critical procurement decisions."

Members from Washington, South Carolina and Illinois who are co-sponsoring the legislation also participated in the press conference.

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