Commerce Department sides with Boeing on CSeries tariff

22 December, 2017, 02:09 | Author: Martin Tyler
  • The Bombardier Aerospace plant in east Belfast

"Boeing does not produce an aircraft in the same class as the C-Series and didn't even bid for the Delta contract it is complaining about, which leaves its complaint totally without merit".

"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.

The US Commerce Department on Wednesday confirmed its decision to impose punitive tariffs of almost 300 percent on airplanes manufactured by Canada's Bombardier (Toronto: BBD-A.TO - news) in a trade dispute that has inflamed relations with Ottawa. 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", he said in a news release.

That has been true since the start of the investigation, and recent developments make it even clearer, particularly the Bombardier and Airbus partnership, which will include the construction of a new US manufacturing facility in Alabama. The complaint found a receptive ear in President Donald Trump, whose "America First" agenda has included taking a tough line in matters of global commerce.

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Unifor will continue to work with Unite, the union representing Bombardier workers in Northern Ireland, on a shared strategy to protect good paying aviation jobs.

Labelling Boeing's complaint "meritless" and a "cover to close the US market", Mr Turner called on the US International Trade Commission (ITC) to set aside the Commerce Department's decision when it hears the next stage of the complaint in February.

Bombardier for its part expressed its disappointment that the U.S. Commerce Department did not take the opportunity to "rectify its past errors".

"The Government of Canada is deeply troubled by the protectionist nature of Boeing's allegations, which seek to advance its market dominance by excluding Bombardier's C Series aircraft from the USA market", Freehand said.

The inquiry now moves to the United States worldwide trade commission, which will examine if the dumping and subsidies caused injury to Boeing.

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The Chicago-based aircraft manufacturing giant said the final duty determination validates its complaint.

This in turn resulted in major loses for Boeing which is Bombardier's biggest rival.

Bombardier argues that they wouldn't since Boeing does not make an aircraft the size of the 100- to 130-seat CS 100.

The partnership with Airbus means there is "no chance Boeing will be harmed by imports", said Mike Nadolski, vice president of public affairs at Bombardier.

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