Prawns-for-Jets

Kerry Howley | January 27, 2005

In exchange for dropping its tariffs on Thai prawns (one of the industries most hurt by the tsunami), the EU wants Thailand to buy six of its (much hyped, heavily subsidized) A380 Airbus Aircraft. According to this report, that should cost Thailand well over $1 billion.

Much like the U.S. tariffs, this deal was in the making before the tsunami struck. But punishing developing countries for competitive advantages wasn't a particularly generous policy pre-tsunami, either.

Comments

|1.27.05 @ 5:40PM|#

Didn't we already talk about this?

|1.27.05 @ 5:51PM|#

No in the last "prawn post" it was the good ol' USA that was taxing imported shrimp.

Actually the EU looks like it has it's shit together in this respect. I would much rathter see the gubmint promote industry with trade deals than collect taxes.

|1.27.05 @ 5:55PM|#

Old news, my friend, and probably not correct either.

|1.27.05 @ 6:09PM|#

Actually the EU looks like it has it's shit together in this respect. I would much rathter see the gubmint promote industry with trade deals than collect taxes.

Well, since the gubmint is promoting its trade deal here by threatening to tax the crap out of the Thais if they don't buy a bunch of planes that they apparently don't need, color me deeply unimpressed.

sage|1.27.05 @ 6:20PM|#

Oops. China Airlines is obvously not caring. They bought something like 60 of the new Boeing 7E7's. Does that sting, Airbus?

|1.27.05 @ 6:59PM|#

We will play you decadent westerners off against each other, making you think we are in both your camps.

In 2050, when our GDP is bigger than both of yours put together, we'll call in all the loans and you'll be lucky to get jobs serving us gin and tonics by what used to be your pools.

Ha, ha, ha!

Ralf Goergens|1.27.05 @ 7:37PM|#

Kerry,

the Scotsman got that story completely wrong:

"Analysts confident European Airbus deal with Thailand will go ahead

25/11/2004

A major aircraft deal between Thailand and European consortium Airbus is likely to go ahead despite threats of a delay by the Thai government blamed on political grandstanding ahead of national elections, analysts said.

Thai premier Thaksin Shinawatra said Tuesday that
national flag carrier Thai Airways International would delay signing a purchase agreement for eight Airbus aircraft, including six A380 superjumbos, while demanding that the European Union ease trade rules covering Thailand's shrimp, poultry and farm products.

The Thai cabinet had approved the 96.3 billion baht (2.4 billion dollars) deal to buy 14 aircraft for the national carrier, to be split between rival manufacturers Boeing and the European consortium Airbus, but it rejected a cash-only deal.

Analysts said, however, that the Airbus deal was on the verge of being completed and the delay threat was for the benefit of a domestic audience ahead of a Thaksin re-election bid expected in February next year".


Analysts confident European Airbus deal with Thailand will go ahead

Ralf Goergens|1.27.05 @ 7:43PM|#

Oops. China Airlines is obvously not caring. They bought something like 60 of the new Boeing 7E7's. Does that sting, Airbus?

Nope. China doesn't have the hubs (except maybe at Beijing) to let the A380 start and land anyway. The A 380 is mostly aimed at Europe, the US and the Gulf States. And there are plenty of orders for it already.

sage|1.27.05 @ 9:21PM|#

Actually Ralf, the competition for the 7E7 (as I understand it) is a modified A318. The A380 is in another league. But so long as you mentioned it, the 380 won't even be able to land in most US airports for at least a few years after it enters service. But the upshot is: If you are a terrorist, that's a big juicy target there, with 555 passengers on board.

|1.28.05 @ 10:52AM|#

Economics aside, that Thai farm shrimp tastes like nothing. It really lacks the flavor of Gulf Shrimp. Maybe I am biased since I love the Southeeast Texas/Lousiana variety. Gonna make me some gumbo 2-nite!

Ralf Goergens|1.28.05 @ 11:23AM|#

Sage,

there are 60 hubs worldwide which can accomodate the A 380 right now. The point is that these hubs are mostly constrained in their growth, and thus the number of slots for starts and landings. The A 380 wil be an attractive proposition for many airlines, for they make it possible to increase the number of passengers per slot. In the mid to long term the number of hubs is going to increase, so that the market for the A 380 will grow. When the 747 was introduced, there weren't all that many airports ready for it either.

Btw, Boeing expects a demand of up tpo 25.000 planes for the next decades. Lets see which shares Boieng and Airbus get from that.

Ralf Goergens|1.28.05 @ 11:26AM|#

Don,

I like them best fried in garlic. I never ate gumbo, but I tried alligator while I was in your neck of the woods. I guess it's an acquired taste, for itseemed like pretty tough fish meat to me.