September 14, 2017

Open Skies Enforcement: A Key Test of ‘America First’ Policy

When it comes to our trade agreements with foreign nations, President Trump has pledged to prioritize defending American workers and standing up to countries that seek to take advantage of them.

When it comes to our trade agreements with foreign nations, President Trump has pledged to prioritize defending American workers and standing up to countries that seek to take advantage of them. In just the last few weeks, the administration has kick-started the renegotiation of the North American Free Trade Agreement and launched an investigation of Chinese trade practices. Conservatives should be grateful that we finally have an administration that is putting “America First” and standing up to fight for American workers and businesses.

A key test of this “America First” trade policy will be whether the Trump administration chooses to enforce our Open Skies agreements with the United Arab Emirates (UAE) and Qatar. Open Skies agreements are bilateral treaties that allow airlines to fly freely between countries without government interference. The United States currently has Open Skies agreements with 121 countries, 119 of which are operating as agreed upon. Two countries are violating the agreements and putting American aviation jobs at risk in the process: the UAE and Qatar.

Both of these countries’ governments are breaching their agreements with the U.S. by providing their state-owned airlines — Emirates Airline, Etihad Airways and Qatar Airways — with over $50 billion in subsidies. By propping up their airlines with an unprecedented amount of money, the UAE and Qatar are enabling these carriers to be immune to standard market forces and pursue expansion strategies that U.S. airlines are simply unable to compete with.

One of these market-distorting practices is called “capacity dumping,” in which the Gulf carriers operate more routes and flights to the U.S. than for which there is passenger demand. The flood of excess capacity drives yields into the ground and makes the routes uneconomic for American airlines, which can’t rely on the U.S. Treasury to reimburse their losses. Since U.S. airlines are subject to the fluctuations of the free market and cannot fly money-losing routes the same way the subsidy-backed Gulf carriers can, they are forced to compete on an uneven playing field — putting the jobs of the 1.2 million American workers who rely on a strong domestic aviation industry at risk.

Despite ongoing reports of massive financial losses, the three Gulf airlines continue their aggressive push towards international dominance. It should be stunning that three airlines, servicing a combined domestic population of just 11 million, have more wide-body aircraft on order than the U.S. and Chinese industries combined. Despite a saturated market, the three Gulf carriers continue to dump capacity with new planes, their losses appearing only on paper thanks to their access to lucrative government subsidies.

History has shown what this could lead to. Just a few decades ago, the U.S. steel industry was on the verge of collapse. “Steel dumping” was rampant as foreign countries both directly and indirectly subsidized their domestic steel industries, “dumping” the excess onto the U.S. market, which artificially depressed prices and closed down mills. In order to preserve this important industry, the Reagan administration accepted Voluntary Restraint Agreements from steel-exporting countries. These countries voluntarily agreed to limit the amount of steel they exported to the United States and the United States responded by terminating trade cases against their exports. We cannot be a nation that allows foreign governments to prop up and operate their state-owned enterprises in ways that violate international agreements and intentionally distort markets, harming U.S. companies and costing American jobs. We must enforce existing agreements to ensure U.S. businesses have a fair and equal opportunity to compete. This means putting a stop to market-distorting subsidies.

President Trump must uphold his promises to ensure U.S. businesses can compete fairly and protect American aviation jobs.

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.