U.S. upholds almost 300% duties on Bombardier in Boeing case

U.S. upholds almost 300% duties on Bombardier in Boeing case

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.

United States secretary of commerce Wilbur Ross has found in favour of United States-based manufacturer Boeing in a dispute over aircraft sales. Boeing alleged that Bombardier sold the planes below cost and received unfair subsidies from Canada's government. That decision is due by February 1.

"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.

In its final determination released Wednesday, the department said it will impose duties of 292.21%, down from 299.45% set in the preliminary phase.

Bombardier criticised the near-300% duties, saying its plan of partnering with the European company Airbus to launch the CSeries assembly from a production line in Mobile, Alabama, would make it an American company. The complaint found a receptive ear in President Donald Trump, whose "America First" agenda has included taking a tough line in matters of worldwide commerce.

In a response the Commerce decision, Bombardier stated: "The evidence presented Monday at the U.S. International Trade Commission demonstrated that Boeing's petition is an unfounded assault on airlines, the flying public, and the U.S. aerospace industry".

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USA trade officials are expected to confirm massive tariffs on Bombardier planes Tuesday in a case that has inflamed relations between Washington and Ottawa.

The inquiry now moves to the United States global trade commission, which will examine if the dumping and subsidies caused injury to Boeing. It includes a 79.82% tariff to offset a Commerce Department ruling that Bombardier engaged in price dumping, meaning it sold the CS100s to Delta below its fair market value by that amount. The company said that its deal with Airbus, including the Mobile manufacturing facility, makes the case against the complaint even clearer.

The Bombardier CSeries jets are narrow-body commercial aircraft for medium-range routes, a category also served by Boeing with its 737 series and Airbus with the A320 series.

"Unfortunately, the Commerce Department decision is divorced from this reality and ignores long-standing business practices in the aerospace industry, including launch pricing and the financing of multibillion dollar aircraft programs", Bombardier said.

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

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