USA finalizes hefty duties in Bombardier-Boeing trade case

Bombardier employs around 4,000 workers in the North with teams here building the wings of the C Series planes and part of the fuselage

Bombardier employs around 4,000 workers in the North with teams here building the wings of the C Series planes and part of the fuselage

The fight, which has contributed to escalating trade tensions between the U.S. and Canada, stems from a 2016 sale of 75 C-Series jets to Delta Air Lines.

"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. The tariffs were initiated in response to a complaint by Boeing regarding government subsidies received by Bombardier by the federal and Quebec governments.

"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", Ross said.

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

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Under a newly forged Bombardier-Airbus partnership a new manufacturing plant will be built in Alabama where the planes will be assembled, providing a possible avenue to avoid the hefty duty.

Bombardier called Boeing's original grievance against C-Series subsidies "an unfounded assault on airlines, the flying public, and the USA aerospace industry".

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

"Boeing does the same thing."The International Trade Commission is scheduled to make a final determination by February if Boeing was harmed by Bombardier's practices, as the Chicago-based company alleges". The trade dispute stems from a complaint by USA aerospace giant Boeing against its Canadian rival that found a receptive ear in President Donald Trump, whose "America First" agenda has included taking a tough line in matters of global commerce.

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Boeing said Bombardier hurt its chances of selling its 737 airplane in the US, which Bombardier denies. It includes a 79.82% tariff to offset a Commerce Department ruling that Bombardier engaged in price dumping, meaning it sold the CS100s to Delta below its fair market value by that amount.

"The fact is that the CSeries simply does not threaten Boeing", Bombardier said in a statement.

The move affects 100- to 150-seat large civil aircraft from Canada.

Bombardier also has argued that Boeing does not manufacture a direct competitor to the CS 100, and its robust order book of 737 planes proves it has not been adversely affected by unfair trade.

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He also said that Boeing's claim was meritless since they don't have an aircraft that can compare to the CSeries.

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