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

A Bombardier CS300 C Series aircraft manufactured by Bombardier Inc

Bombardier's C Series 100- to 150-seat aircraft will face antidumping and countervailing duties of nearly 300 percent if shipped into the USA, the Commerce Department announced today.

"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", Ross said.

He also added: "We would urge the US International Trade Commission to do the right thing for fair trade and jobs by finding against Boeing and setting aside the commerce department's determination when it makes its final decision in the New Year". Bombardier calls Boeing's criticism unfounded, saying that the USA company's entire case has been overtaken by events.

Boeing Co and Bombardier Inc traded barbs on Monday over the US planemaker's claim that its Canadian rival benefited from billions of dollars in illegal government subsidies and dumped its newest jetliner in the United States at below cost.

Bombardier argued Boeing's large 737 order book shows there has been no adverse impact from its CSeries jet and that the US planemaker does not manufacture a jet that competes with the new model. "Boeing did not compete in the Delta campaign".

Susan Fitzgerald, the Unite regional officer for Bombardier in NI said: "This decision poses a devastating risk for the Northern Ireland economy".

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

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Boeing, which launched the petition over the sale of 75 CSeries aircraft to Delta Air Lines, says the decision validates its complaint.

Delta is expected to wait for that new plant to open before taking delivery of their order.

Delta CEO Ed Bastian told Business Insider in a recent interview that the C Series plane is already made with at least 50 percent USA parts and moving its assembly to Alabama would boost that percentage up to about 60 percent.

Bombardier plans to build the planes in Mobile, Alabama, where Airbus assembles narrow-body jets.

But Bombardier argues that Boeing's case is against full imports of airplanes, not parts, so it does not apply to imports of wings, fuselages and other pieces.

The U.S. planemaker said Bombardier failed to cooperate in a U.S. investigation providing pricing information to the United States.

The CSeries poses no threat to the USA aerospace industry because building it at the Airbus factory in Alabama would create U.S.jobs and generate billions of dollars in business for US aerospace companies, Bombardier said. The four commissioners asked a broad range of questions, including some that revealed an ignorance about fundamental details of the industry's dynamics, including asking if Boeing adjusts 737 production rates based on demand and whether any CSeries has entered operational service yet.

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