Wednesday, 26 September, 2018

United States Rules In Favor Of Boeing, Slaps Bombardier With Tax

The Bombardier Aerospace plant in east Belfast The Bombardier Aerospace plant in east Belfast
Kenneth Drake | 22 December, 2017, 02:08

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.

Secretary of Commerce Wilbur Ross says the tariff decision came after a "full an unbiased review of the facts".

Today's ruling maintained a preliminary anti-dumping duty while slightly lowering the massive preliminary countervailing duty, reducing the overall duties on the C-Series from 299.45 per cent to 292.21 per cent.

Boeing, which launched the trade case in April, is arguing that Canadian and British governments are subsidizing the plane's cost, allowing Bombardier to sell into the USA market at unfairly low prices.

"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.

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 USA manufacturing facility in Alabama.

Freeland also called the duties "highly punitive to aerospace workers on both sides of the border", pointing to "a highly integrated production and supply chain" that includes Bombardier parts suppliers in both Canada and the United States.

In the progress of the trade dispute, Bombardier agreed to sell a majority interest in the CSeries program to Airbus, intensifying the completion in that product category for Boeing.


In order to uphold the Commerce Department-proposed tariff, the International Trade Commission must find that imports of the C-Series planes will materially hurt Boeing.

"It's incredibly disappointing that the U.S. Commerce Department has chose to maintain punitive and unreasonable tariffs which hurt the entire aerospace sector", said Unifor National President Jerry Dias.

"Today's decision validates Boeing's complaints about the Bombardier prices in the USA, prices that have harmed our workforce and the American industry", said Boeing in a press release.

In a hearing on 18 December, the four commissioners in the ITC betrayed no obvious slant, grilling executives and experts from Bombardier and Boeing about equally.

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

The question now before the ITC is whether those improper benefits injured Boeing in the 100-150-seat market for commercial aircraft.

Boeing, she said, is seeking to "advance its market dominance by excluding Bombardier's C Series aircraft from the USA market".

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