United States upholds almost 300% duties on Bombardier in Boeing case

United States upholds almost 300% duties on Bombardier in Boeing case

Boeing stated the decision validated its complaints about Bombardier's aircraft pricing in the United States, "pricing that has harmed our workforce and USA industry".

Secretary of Commerce Wilbur Ross says the tariff decision came after a "full an unbiased review of the facts".

"Today the U.S. Department of Commerce reaffirmed the magnitude to which Bombardier has been subsidized by government funds and the extent to which it dumped C Series aircraft in the United States, selling those aircraft at prices millions below production cost in an illegal effort to grab market share in the U.S. single-aisle airplane market", the firm said in a statement.

Boeing claims Delta paid $20 million per plane, well below an estimated cost of $33 million and what Bombardier charges in Canada.

"The Commerce Department announced total duties of 292.21 percent - a final antidumping rate of 72.82 percent and a final countervailing duty rate of 212.39 percent - in a case brought by Chicago-based Boeing".

It is expected to make a final decision in February 2018, which would trigger the duties.

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"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 said in a news release.

"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 US market", Freehand said.

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

Primary assembly of the C Series planes will remain in Quebec, but final assembly is to be moved to Airbus' existing manufacturing site in Mobile, Ala.

The Commerce Department's decision comes as the Trump Administration takes a hard line on trade practices it views as hurting American workers.

The inquiry now moves to the United States global trade commission, which will examine if the dumping and subsidies caused injury to Boeing.

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Bombardier doesn't deny that Delta received a good price.

Boeing said Bombardier hurt its chances of selling its 737 airplane in the USA, which Bombardier denies.

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.

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.

Bombardier argues that they wouldn't since Boeing does not make an aircraft the size of the 100- to 130-seat CS 100.

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