Bombardier C Series aircraft - Image: From the net
Andrew Mayeda and Frederic Tomesco
October 8 2017 6:00 PM
The US slapped duties on Bombardier's showcase commercial
jet for the second time in as many weeks on Friday, upholding Boeing's case
that its Canadian competitor sold planes at less than fair value.
The Commerce Department imposed a preliminary import duty
of 80pc on Bombardier C Series aircraft based on its finding, according to an
emailed statement. The agency ruled last week that the Montreal-based
plane-maker, which invested more than US$6bn (€5.1bn) to develop the all-new C
Series, benefited from unfair subsidies.
The second round of import duties marks the latest blow
for Bombardier, which received financial support from Quebec and Canada as its
biggest jet came in two years late and about $2bn over budget. The ruling is
also bound to stoke tensions between the US and two key allies, Canada and the
UK, which have expressed dismay with the Commerce Department. Bombardier
employs over 4,000 workers at its east Belfast plants, and uses suppliers from
around the island.
Both charges - last week's 220pc countervailing duties
and Friday's anti-dumping restrictions - could be reversed by the US
International Trade Commission if the tribunal concludes that Boeing wasn't
injured by Bombardier's jet programme, a decision expected to be made next
year. The Commerce Department also still needs to issue a final ruling in both
cases.
Canadian Foreign Affairs Minister Chrystia Freeland said
she was "extremely disappointed" in the latest US decision, vowing to
defend the country's aerospace industry against "irresponsible and
protectionist trade measures" that also hurt some US workers.
"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," Freeland said. The measures also "put at
risk the almost 23,000 US jobs that depend on Bombardier and its
suppliers."
The controversy is likely to hang over Prime Minister
Justin Trudeau's trip to Washington this week, where he is scheduled to discuss
trade with US President Donald Trump just as negotiators hold the fourth round
of talks to amend the North American Free Trade Agreement. Trudeau has warned
that his government won't buy Boeing military jets unless the company drops the
case.
Bloomberg
Original post: independent.ie
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