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An Additional Blow to Bombardier by the US Commerce Department

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An Additional Blow to Bombardier by the US Commerce Department

An Additional Blow to Bombardier by the US Commerce Department
October 06
14:53 2017

MIAMI – The U.S. Commerce Department ordered an additional 79.82% tariff to all Bombardier CSeries jets that are imported from Canada to the U.S.

With this increase, trade duties of almost 300% will be imposed to Canadian manufacturer, Bombardier, on sales of its newest CSeries jets to United States-based companies.

The controversial measure came in amidst Boeing’s complaint about “illegal subsidies” the Canadian manufacturer received to sell aircraft with “absurdly low” prices to Delta Air Lines in 2016.

“This was an avoidable outcome within Bombardier’s control,” Boeing said in a statement. “The laws governing global trade are transparent and well known. These duties are the consequence of a conscious decision by Bombardier to violate trade law and dump their CSeries aircraft to secure a sale.”

Delta Air Lines said it was confident regulators “will conclude that no U.S. manufacturer is at risk” from Bombardier’s plane.

The decision comes after Canada and the UK made some objections on a trade dispute that made relations difficult with both countries, and the antidumping case brought by Boeing.

These actions will add an additional 219.63% duty for subsidies that were announced last week in a separate anti-subsidy decision from which Canada and the UK reacted.

Theresa May, UK’s Prime Minister, said it was a “bitter disappointment”, while the government said Boeing risked losing future work in the region.

Also, Justin Trudeau, Canada’s Prime Minister, said he’s disappointed and that he will fight for Canadian jobs, warning his government won’t buy Boeing military jets unless it drops the case.

“The United States is committed to free, fair and reciprocal trade with Canada, but this is not our idea of a properly functioning trading relationship,” said the U.S. Commerce Secretary, Wilbur Ross.

“We will continue to verify the accuracy of this decision while doing everything in our power to stand up for American companies and their workers.”

According to Reuters, the penalty will take effect just if the U.S. International Trade Commission is affirmed early next year and would magnify trade tensions between the involved nations: U.S., Canada and the UK.

Delta Air Lines placed an order for 75 CSeries aircraft last year, a deal with a list value of more than $5 billion, and deliveries are expected to begin in 2018. The carrier is the only U.S. airline that has an order on Bombardier’s newest jet.

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About Author

María Corina Roldan

María Corina Roldan

Online Editor. Journalist and Certified Radio Host. Studying for a Specialization in Public Opinion and Political Communications. Even though I love politics I've found myself fascinated by the Aviation World. I'm also passionate by economy, strategic communications, my family, my country, and dogs. mc@airwaysmag.com

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