U.S. secretary of commerce sides with Boeing on Bombardier dispute

Posted December 22, 2017

The United States on Wednesday finalized steep duties against Bombardier C Series commercial jets, a move that may further inflame tensions over ongoing negotiations of the North American Free Trade Agreement (NAFTA).

The decision follows the DoC's preliminary recommendation of duties on Bombardier's C Series jets earlier this fall.

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

Labelling Boeing's complaint "meritless" and a "cover to close the US market", Mr Turner called on the US International Trade Commission (ITC) to set aside the Commerce Department's decision when it hears the next stage of the complaint in February.

Boeing, she said, is seeking to "advance its market dominance by excluding Bombardier's C Series aircraft from the United States market". Investigations "established beyond question that Bombardier has taken billions of dollars in illegal government subsidies to prop up its C Series program", Boeing said after the hearing.

"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. 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.

The partnership with Airbus means there is "no chance Boeing will be harmed by imports", said Mike Nadolski, vice president of public affairs at Bombardier.

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There is more information on the U.S. department of commerce decision here.

"Boeing's assertion that future imports from Canada threaten to cause material injury is necessarily based on just the type of "speculation and conjecture" that is prohibited under both USA and worldwide law", MacNaughton told the panel.

"The Government of Canada is deeply troubled by the protectionist nature of Boeing's allegations, which seek to advance its market dominance by excluding Bombardier's C Series aircraft from the USA market", Freehand said.

Delta is expected to wait for that new plant to open before taking delivery of their order. "That's years of lost production and deliveries for Boeing, years of lost work for our employees, and years of lost work for our USA suppliers", Boeing Executive Vice President Kevin McAllister said. He says nothing justifies such duties.

Bombardier was able to underprice the jets due to $3 billion in unfair government subsidies, Boeing says. The case has been a sore point in U.S.

Bombardier says more than half of the value of CSeries content comes from the United States, including engines by Pratt & Whitney.

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