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newsmoments.net October 23, 2017


Bombardier fights back after new duty put on CSeries sales to US

08 October 2017, 12:42 | Simon Arnold

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

Some of Bombardier's 200,000 employees who here are working the on new C Series´╗┐ jets at the company's plant may be hurt by the new duties that the United States imposed on the company for unfair subsidies

Last week, the US Department of Commerce said C-Series jets should be subject to 219pc import duty, due to subsidies its manufacturer Bombardier gets from Canada and the UK.

The US says Montreal-based Bombardier used unfair government subsidies to sell jets at artificially low prices in the United States.

"These anti-dumping duties on Bombardier's CSeries aircraft unfairly target Canada's highly innovative aerospace sector and its more than 200,000 workers - and put at risk the nearly 23,000 U.S.jobs that depend on Bombardier and its suppliers", Freeland also said.

The 80-percent duty would apply to medium-range aircraft with 100 to 150 seats, the Commerce Department said on Friday.

A final decision on any USA duty is expected next year. The duties would be applied to Bombardier's CSeries when delivered to Delta Airlines from the spring of 2018.


The move follows last week's move to impose almost 220 per cent preliminary countervailing tariffs on Bombardier.

Boeing's complaint has prompted a heavy political reaction from the Canadian government and British Prime Minister Theresa May, who fears job losses at Bombardier's wing assembly facility in Northern Ireland.

U.S. Commerce Secretary Wilbur Ross said the decision affirmed Trump's "America First" policy.

Bombardier can appeal the decision to a United States court or to a dispute-resolution panel created under the North American Free Trade Agreement (NAFTA).

"Ministers sat in Westminster can not shrug off the Bombardier crisis as a trade spat between Canada and the US".


Last month, the US government approved the sale of 18 Boeing Super Hornet jets to the Canadian military, at a cost of 6.4 billion Canadian dollars (about 5.1 billion USA dollars), to replace Canada's aging fleet of CF-18 Hornets from McDonnell Douglas, which merged with Boeing in 1997.

The trade dispute threatening 4,200 jobs in Belfast intensified last night as the U.S. government hit Bombardier with a new punitive tariff.

Bombardier has called Boeing's complaint "unprecedented in its overreach".

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. 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".

Boeing has said the CSeries would not exist without hundreds of millions of dollars in launch aid from the governments of Canada and Britain and a $2.5 billion equity infusion from the province of Quebec and its largest pension fund in 2015.




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