Bombardier wins battle against USA trade tariffs

28 January, 2018, 00:52 | Author: Martin Tyler
  • Bombardier ruling due Friday amid spate of US protectionism

Indeed, the legal attack may have backfired on several fronts. Boeing is a major source of lobbying funds in the nation's capital and a major beneficiary of government subsidies.

It also alienated top customer Delta Air Lines, blocked from buying the CSeries by the proposed tariffs.

The U.S. International Trade Commission has ruled in favour of Montreal's Bombardier a trade dispute with Chicago-based Boeing Co. Last year, the number of anti-dumping and countervailing duty investigations launched by the Commerce Department rose more than 60 percent.

Bombardier issued a statement calling the decision "a victory for innovation, competition, and the rule of law". Its wings are built in Belfast, Northern Ireland.

The levies would have massively ramped up the cost of the 75 aircraft and likely caused Delta to cancel the contract. About 40 percent of the financing backed by the Export-Import Bank, for example, goes to subsidize Boeing sales.

The case report will be made available March 2 on the ITC website. In its deposition during the ITC proceedings, Delta simply said that Boeing did not offer anything that was considered viable by the company.

The exchange commission was entrusted with deciding if Boeing was or could be hurt by Bombardier.

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However, during a review of the ruling on Friday, January 26, the USITC voted 4-0 against the DOC motion thereby blocking it.

The four current commissioners were appointed by presidents Barack Obama and George W. Bush.

Politicians and unions in the United Kingdom have reacted with surprise and relief after the Canadian aerospace firm Bombardier won a major trade case in the US.

Bombardier won its case against United States proposals to impose tariffs of 292% on its imports to America - a result which could safeguard thousands of jobs in Belfast.

The aircraft decision ruling paves the way for Bombardier to begin deliveries of Canadian-built CS100 jets to Delta this year.

Boeing said it was "disappointed" and vowed to continue to document the damage from "illegal subsidies and dumped pricing". Hopefully, like the Bombardier situation, their prospects can be improved too.

Standing on that principle now looks costly.

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But the unanimous ITC decision, coming after preliminary rulings that pointed to steep tariffs, caught many analysts by surprise.

The dispute forced Bombardier into the arms of Boeing's chief rival Airbus.

Britain's business minister, Greg Clark, also welcomed the news, saying in a statement that the British and Canadian governments had maintained all along that the case was unjustified.

Now that court has delivered its verdict, and Boeing lost.

"We always believed that the C Series, in order to reach its full potential, would need a very strategic partner and we do have a strategic partner in Airbus", he said.

There's just one possible silver lining for Boeing in Friday's outcome.

"We are extremely proud of our employees, investors and suppliers who have worked together to bring this remarkable aircraft to the market."
Susan Fitzgerald, Unite regional officer for the union's membership at Bombardier in NI said that the decision "showed what could be achieved when workers stood together, organised and mobilised to defend their interests".

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