nsucurrent.com February 22, 2018

Bombardier hit with additional CSeries duty

08 October 2017, 12:44 | Colleen Roy

US escalates trade dispute with UK and Canada over Bombardier

Further tariff of 80% imposed on import of C-Series

The US Commerce Department has added to Canadian plane maker Bombardier's problems with the announcement of a further import duty on its CSeries aircraft.

Delta said the decision was preliminary and it was confident the ITC "will conclude that no US manufacturer is at risk" from Bombardier's plane.

"These anti-dumping duties on Bombardier's C Series aircraft unfairly target Canada's highly innovative aerospace sector and its more than 200,000 workers - and put at risk the nearly 23,000 USA jobs that depend on Bombardier and its suppliers", said Chrystia Freeland, Canada's foreign affairs minister.

The Commerce Department proposed a 79.82 per cent antidumping duty after a preliminary finding that the jets were sold below cost to Delta Air Lines Inc (DAL.N) in 2016.

According to the Seattle Times, the Commerce department said Bombardier failed to provide the information it requested in the case and it accepted Boeing's argument that the CSeries sale represents unfair competition because of government subsidies.

The U.S. said a final decision on the Boeing complaint is slated for December 19. The duties would be applied to Bombardier's CSeries when delivered to Delta Airlines from the spring of 2018. The Canadian manufacturer argues that Boeing doesn't make planes that compete with the aircraft - an assertion that Delta backed up in its testimony before the International Trade Commission.

Boeing added that the duties are the result of Bombardier deliberately trying to violate trade law.

"These tribunals are like the right arm of the large corporations of Boeing", said Dave Chartrand, Quebec co-ordinator of the International Association of Machinists and Aerospace Workers.

Bombardier asserts that Boeing has not suffered any prejudice because it has no aircraft to offer in the range of 100 to 150 seats occupied by the CSeries.

"We will stand up and we will fight".

The US Department of Commerce has again ruled against aerospace firm Bombardier in its dispute with rival Boeing. The total list price value of the order is USD$5.38 billion, or $71.8 million per aircraft, but Boeing said the price paid was $19.6 million per aircraft. The plane supports an estimated 22,700 jobs and Bombardier's aerospace division spent $2.14 billion in the United States previous year, according to the company and documents seen by Reuters.

Boeing alleges the unfair subsidy stems from when Northern Ireland's power-sharing administration and the UK Government pledged to invest almost £135m to help set up a C-Series manufacturing site in Belfast.

He added: "Ministers have a duty to defend jobs and future manufacturing in Northern Ireland and the rest of the United Kingdom by demanding Boeing attends an urgent summit involving Prime Minister Theresa May and the Canadian prime minister Justin Trudeau alongside the unions representing our workforce and withdraws its unwarranted claims".

The U.S. government sided with Boeing.

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