US and EU:
more protection than defence?
Grim economic reality is
biting the defence sector.
We’re in a shrinking area.
And that is just a fact of life.
You can see it
in the militaries getting smaller.
You can see it
in the ministries getting smaller.
And in the defence industry
getting smaller.
This is a fundamental fact.
Even in the US,
when you look at the sequestration,
our recent government shutdown,
budgets are driving
the capabilities that we can afford.
So you have to think differently.
This thinking differently
will have to overcome
some heavily ingrained practices.
These include barriers
between the EU
and US defence companies.
We partner with several
large European companies
that sell products in other countries.
They’re always enthusiastic,
but the last minute they say:
I have to check with my government.
Every country’s number one
defence customer is its home market.
Without a home flag on your product,
it’s virtually impossible
to take it anywhere else.
The export market demands that.
One development, which could
help bring them closer together?
is the new Transatlantic Trade
and Investment Partnership or TTIP.
The Transatlantic
Trade Investment Partnership
is one that, even though
the WTO excludes defence,
that’s a national prerogative,
as does TTIP,
if TTIP will create
a favourable environment,
an umbrella under which
even defence will be able
to foster a better relationship.
We’ve got to still find a way
to continue to reduce some barriers.
They’re not invisible,
they’re definitely there.
And we can work harder to do that.
But what about the US’s
famous pivot to Asia?
How does this play
into the transatlantic relationship?
Well, there’s a lot to be said
about a pivoting from Europe.
I’m a basketball fan.
So, when someone says pivot,
I always look to make sure to see
if they actually have an anchor.
And for defence industry,
and certainly also for the US,
Europe is our anchor.
The success and underpinnings
of smart defence
is predicated
on transatlantic relations
and Europe and the United States.
And there is evidence
that the relationship is stronger
than some may think,
either through desire or necessity.
For Boeing, to move
into the European environment,
it’s imperative
that you partner with companies.
We can’t go hardly
anywhere in Europe
without having
somebody else be the leader,
whether it’s a Thales or it’s a BAE
or it’s a small company
in Poland or in Italy.
Of the six partners
that we have here in Europe,
all have components,
pieces and participation
in every F-35 that flies today.
So, why do the barriers
remain such an obstacle?
When you have special technology,
whether it’s us
or Germany or Italy
or France or whoever,
you’ve got to put the right walls
around that special technology.
But I think most of us
still tend to protect too much.
But there are a lot of other things
that we could more easily
and transparently deal with
with friends and allies.