"US-EU strategic trade: The case of civil aeronautics"

Lawrence, Philip K. (1997) "US-EU strategic trade: The case of civil aeronautics". In: UNSPECIFIED, Seattle, WA. (Unpublished)

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Abstract

This paper challenges the idea that the US economy has corresponded to a laissez-faire model. Broadly speaking, this lack of fit between the model and empirical reality results from ideology and culture. Liberalism has been and is a cornerstone of American identity. But the discursive practice of liberalism rarely fits aspects of social reality that sit uncomfortably with the liberal self image. This paper addresses the de facto industrial policy of the USA and its implications for the commercial aerospace sector. In the paper I argue that US trade in aerospace products is the sine qua non of strategic trade and that the success of this sector results from a powerful and effective industrial policy which subsidizes commercial aerospace manufacturing. In consequence I suggest that US complaints about subsidy and the role of the state in the European aerospace industry are ill founded and unjustifiable.

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