By Bill Hammond
Texas Insider Report: AUSTIN Texas In football there are some basic rules. You cant bulk up with the help of performance-enhancing drugs. You cant hit below the waist to take out your opponents knees. And when rules pertain to Texas jobs theres a lot more at stake than a football game. The future of Americas aerospace industry Texas businesses and job creation are on the line.
Football rules and others are meant to ensure fair play. Break them and youll get flagged suspended or even banned.
International trade has rules as well. Youre not supposed to beef up your business prospects with the help of government subsidies. Youre not supposed to block trading partners from selling their goods on your shores.
Yet these are exactly the kinds of dirty tactics used by the Europe Union and the aerospace company it created Airbus.
In one of their most recent and glaring examples of flouting free trade principles Europe provided Airbus with $5 billion of subsides in an attempt to cheat its U.S. competitor Boeing out of a fair chance at a $35 billion Pentagon contract and the more than 50000 jobs it would support including 2500 in Texas.
The subsidies which came in the form of below market rate loans helped build the airborne 
refueling tanker Airbus wants to sell to the Air Force.
The World Trade Organization (WTO) threw the flag on Airbus recently ruling the subsidies illegal. But the EU and Airbus blithely ignored the worlds free trade referee. Theyre pressing ahead and trying to get U.S. taxpayers to foot the bill for their subsidized tanker that will destroy American jobs.
We shouldnt be surprised by the EU and Airbus behavior in the tanker contract.
For years theyve broken trade laws in an attempt to steal American aerospace jobs and market share. Theyve already pilfered tens of thousands of American jobs with the help of illegal EU subsidies. In fact Airbus has benefited from $178 billion of subsidies over the last 20 years.
And Airbus isnt just using subsidies to kill American jobs.
Officials of their parent company EADS have even been implicated in attempts to bribe foreign officials to purchase their aircraft over those built by U.S. firms. Their friends in European parliaments also do their best to ensure that Airbus competitors are virtually blocked from bidding on some lucrative defense contracts in EU countries.
Given its outlaw history it should come as no surprise that Airbus is now attempting to cheat its way to victory in the tanker contract competition. For too long weve stood on the sidelines and let them get away with it.
So its past time we stopped playing powder puff with trade cheats and got tough. Theres too much at stake for Texas businesses to do any less.
For example in the Dallas-Ft. Worth area Parker Aerospace would build many components for a Boeing tanker including its hoses tubes and fittings.
Nearby at Vought Aircraft Industries in Grand Prairie theyd construct portions of the planes aft body section and its horizontal stabilizer.
But not if Airbus steals the tanker deal. It would be a devastating blow to Texas businesses that are already struggling to create jobs despite the tough economic climate uncertainty about federal tax policy and increasingly burdensome regulations.
But heres a game plan that can help Texas businesses by ensuring a fair tanker competition. Congress and the Obama administration should direct the Pentagons procurement officials to insist that Airbus compete without the help of their subsidies.
If Airbus should refuse the Defense Department must account for the value of the subsidies when weighing the tanker bids. Thats the only way that bids from Airbus and Boeing can be fairly and accurately compared.
Theres no instant replay in international trade. If Airbus cheats its way to victory the $35 billion tanker contract and its more than 50000 jobs will head overseas. Instead of employing Texans it will provide jobs to Airbus French German and Spanish workforce.
Its time tackle this critical economic issue before Airbus bull rushes its way to an ill-gotten victory.
Bill Hammond is the President and CEO of the Texas Association of Business Texas leading employer organization.
