Published: Wed, October 11, 2017
Global News | By Stacy Ballard

United States proposes further duty on import of Bombardier C-Series jets

United States proposes further duty on import of Bombardier C-Series jets

Boeing has previously said the row "had nothing to do with limiting innovation or competition" but was about "maintaining a level playing field and ensuring that aerospace companies abide by trade agreements".

"These duties are the outcome of a conscious decision by Bombardier to violate trade law and dump their CSeries aircraft to secure a sale", Chicago-based Boeing said in a statement.

"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".

The decision is expected to heighten trade tensions that flared last week after the United States announced a preliminary duty of almost 220 percent for subsidies Bombardier received, which was well above the 80 percent duty Boeing sought in its complaint.

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Clark also pointed out that Boeing did not manufacture a competing aircraft in the CSeries category, and establishing any detriment to Boeing was seemingly "impossible".

The latest duty matches the amount originally proposed by Boeing, before it revised its request to 143 per cent because of Bombardier's refusal to provide certain information to the Commerce Department. The Canadian government can also take the case to the World Trade Organization in Geneva.

The punitive tariffs will now have to be approved by the US International Trade Commission (ITC) early next year. Dumping occurs when a foreign company sells its products in the United States at less than fair market value.

"Following the initial determination, there is then a further call for evidence. we look to the U.S.to make sure that this is a rigorous process and is not politically influenced", Clark told lawmakers.

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The row between Boeing and Bombardier comes just as the United Kingdom is looking to negotiate a number of major global trade deals.

"Boeing recognises that Bombardier's multi-billion pound investment in a blank-page redesign of commercial aircraft has resulted in a line that is superior in terms of space, quality, reliability and fuel economy to Boeing's decades-old designs. All I would observe is that it is hard to point to competition when the product does not compete with an existing Boeing product, so Boeing's longer-term motivations will need to be justified to the International Trade Commission".

Bombardier has repeatedly stressed that Americans will be hurt by the tariffs because more than half the content on the 100- to 150-seat CSeries is sourced by US suppliers, including Pratt & Whitney engines.

Bombardier employs more than 4,000 people in Northern Ireland - and is one of its biggest private sector employers.

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