Washington, Ottawa clash in Bombardier trade fight

22 December, 2017, 02:09 | Author: Salvatore Jensen
  • Bombardier Loses Bid

Delta Air Lines was originally expected to receive the first of its firm order for 75 CS100 planes next spring, but now plans to wait until the aircraft destined for US customers will be built from the Airbus manufacturing plant in Alabama.

"This decision is based on a full and unbiased review of the facts in an open and transparent process", Commerce Secretary Wilbur Ross said in a statement.

Now that the Commerce Department has decided the amount of the tariff, the final decision on whether to implement the 292.21% duty moves to the US International Trade Commission. Boeing alleged that Bombardier sold the planes below cost and received unfair subsidies from Canada's government.

"The United States is committed to a free, fair and reciprocal trade and will always stand up for American workers and companies being harmed by unfair imports". The commission's final decision is expected on February 1.

"As a result of its exhaustive investigation, the Commerce Department has calculated a final duty determination of 79.82% to be imposed on each Bombardier C Series aircraft and partially-assembled aircraft imported into the United States as a result of dumping, and an additional 212.39% duty due to evidence of foreign government subsidization".




Bombardier criticised the near-300% duties, saying its plan of partnering with the European company Airbus to launch the CSeries assembly from a production line in Mobile, Alabama, would make it an American company.

Susan Fitzgerald, the Unite regional officer for Bombardier in NI said: "This decision poses a devastating risk for the Northern Ireland economy". The complaint found a receptive ear in President Donald Trump, whose "America First" agenda has included taking a tough line in matters of worldwide commerce. The trade dispute stems from a complaint by USA aerospace giant Boeing against its Canadian rival that found a receptive ear in President Donald Trump, whose "America First" agenda has included taking a tough line in matters of global commerce.

Boeing argues that Bombardier signed a deal to sell its new single-aisle CS 100 planes with a price tag of just $19.6 million each, far below the $33.2 million construction cost, and a pittance compared with the list price of $79.5 million - though that amount is nearly never paid. Boeing, Bombardier and Delta presented arguments to the ITC this week. The company said that its deal with Airbus, including the Mobile manufacturing facility, makes the case against the complaint even clearer. But the panel also appeared dubious about Bombardier's claims that the CSeries and the smallest versions of the 737 do not compete against each other at all.

"Attempts by Boeing to put tens of thousands of aerospace workers out of work across Canada is not something we look on positively", Trudeau said in October after pressing Trump on the matter.

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