USA slaps Bombardier with more duties in Boeing dispute

Posted October 08, 2017

Bombardier "strongly disagreed" with the preliminary decision saying it "represents an egregious overreach and misapplication of the USA trade laws in an apparent attempt to block the CSeries aircraft from entering the U.S. market".

The move follows last week's move to impose almost 220 per cent preliminary countervailing tariffs on Bombardier.

Boeing complained to the American government about Bombardier earlier this year after the Montreal-based company secured a deal to sell CSeries planes to Delta airlines last year.

"The US is committed to free, fair and reciprocal trade with Canada, but this is not our idea of a properly functioning trading relationship", Commerce Secretary Wilbur Ross said on Friday.

"We will continue to verify the accuracy of this decision, all the while doing our best to defend the american companies and their workers", said Mr. Ross in a press release.

"Boeing is manipulating the USA trade remedy system to prevent Bombardier's new aircraft, the CSeries, from entering the US market, despite Boeing's admission that it does not compete with the CSeries", Canadian Foreign Affairs Minister Chrystia Freeland said in a statement Friday.

Washington said its move was out of concern to prevent "injurious dumping" - exporting a product to a country at a lower price - of imports into the USA, "establishing an opportunity to compete on a level playing field".

Bombardier Inc is betting on fast-growing markets like India to boost sales of its Q400 and CSeries narrow-body planes, a senior executive said on Thursday, at a time when the Canadian planemaker faces a trade row over sales to the United States.

The US government preliminary decision affects imports of 100-150 aircraft from Canada.

U.S. Customs and Border Protection will collect cash deposits from importers of the.

The decision falls in line with US President Donald Trump's "America First" push and further strains the already rattled US trade relations with the United Kingdom, where the C-Series jets are made.

The Northern Ireland party's ten MPs are propping up the Theresa May's minority administration in the House of Commons and are expected to play a crucial role during upcoming Brexit business in Parliament.

The row has caused concerns over jobs in the United Kingdom, with Bombardier employing some 4,000 people in Northern Ireland.

The firm also took umbrage with Bombardier receiving $1bn (£765m) from the Canadian provincial government in Quebec in 2015, when its fortunes appeared to be flagging.

Bombardier called the decision "an egregious overreach and misapplication of the USA trade law".

"These tribunals are like the right arm of the large corporations of Boeing", said Dave Chartrand, Quebec co-ordinator of the International Association of Machinists and Aerospace Workers.

Whether its payments from governments constitute a purely commercial matter is contested.

Bombardier shares were last down 0.5 per cent to $2.18.

The manufacturer has been a major employer in Northern Ireland for 30 years.

The US trade commission is due to rule on the Department of Commerce's 220% tax proposal next year, but ISME said the European Union should not wait for the final decision.