USA finalizes hefty duties in Bombardier-Boeing trade case

The U.S. Department of Commerce Department finalized duties of up to 300% on sales of Bombardier CSeries aircraft, following hearings this week, and upholding its finding that a 2016 sale of at least 75 of the narrow-body jets to Delta Air Lines comprised an unfair trade practice.

Ross ruled Canada-based Bombardier received government subsidies and sold its C-Series jets below cost price in the USA, a step likely to lead to tariffs of more than 200 per cent on the plane. If no injury is found, the ITC could terminate the Commerce Department's tariff. Mulvaney eyed for interim head of consumer agency Wilbur Ross sued by former colleagues Bloomberg drops estimate of Commerce secretary's wealth to 0M MORE in a statement.

The decision also included language that could disrupt Bombardier's plan to circumvent the tariff by completing final assembly of CSeries aircraft ordered by U.S. airlines in Mobile, Alabama.

In October, European aerospace giant Airbus, Boeing's chief rival, said it would take a majority stake in the C Series program.

"Today's decision validates Boeing's complaints regarding Bombardier's pricing in the United States, pricing that has harmed our workforce and US industry", Boeing said in a statement.

"Boeing is using its meritless complaint as cover to close the United States market, which is one of the biggest in the world, to new entrants such as Bombardier's C Series aircraft", Turner said.

With the new judgement passed on Wednesday, the USA chose to find in favor of Boeing.

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A ruling by the ITC that the CSeries pricing and government support harmed Boeing will add another setback to Bombardier's commercial aircraft business.

There is more information on the United States department of commerce decision here.

"A single large order, like Bombardier's sale to Delta, takes years of demand out of the market".

Bombardier was able to underprice the jets due to $3 billion in unfair government subsidies, Boeing says.

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. The case has been a sore point in U.S.

Boeing says the CSeries benefited from hundreds of millions of dollars in launch aid from the governments of Canada and Britain and a $1 billion equity infusion from the province of Quebec.

Bombardier also argues that Boeing and Airbus do not compete with the CSeries because their planes are larger and have more range.


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