Boeing-Bombardier spat puts US-Canadian trade deals in spotlight

22 December, 2017, 00:21 | Author: Elaine Woods
  • US finalizes hefty duties in Bombardier Boeing trade case

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"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 adds.

The International Trade Commission will make its final injury determination by February 1, and if injury is found, Commerce will issue AD and CVD orders. However, the decision had been temporary while the US decided how to best proceed in the matter.

Canada vowed to fight the Commerce Department's determination.

Canadian Foreign Affairs Minister Chrystia Freeland echoed Bombardier's lament, saying Ottawa is "deeply troubled by the protectionist nature of Boeing?s allegations".

The petitioner in the case, Boeing, does not now offer a rival product to the Bombardier C Series.

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Boeing celebrated its victory Wednesday.

The U.S. planemaker said Bombardier failed to cooperate in a U.S. investigation providing pricing information to the United States. The three countries have been struggling to update the 23-year-old pact.

Boeing filed the complaint against its aerospace rival earlier this year, claiming that Bombardier was selling civilian passenger aircraft at cut-rate prices to Delta Airlines in the U.S. It complained to the Trump administration that Bombardier was receiving subsidies from the Canadian government.

"Today's decision validates Boeing's complaints regarding Bombardier's pricing in the United States, pricing that has harmed our workforce and USA industry", Boeing said in a statement. Speaking after the verdict, Bombardier said, "Unfortunately, the Commerce Department decision is divorced from...reality and ignored long-standing business practices in the aerospace industry, including launch pricing and the financing of multibillion dollar aircraft programs".

The case stems from an April 2016 sale of 75 CSeries jets to Delta Air Lines Inc. Boeing suffered another setback last week when Delta announced it was ordering 100 Airbus planes to renew its narrow-body fleet in a move that analysts viewed as a snub of Boeing over the case. 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 worldwide commerce.


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