USA secretary of commerce sides with Boeing on Bombardier dispute

A Bombardier CS300 C Series aircraft manufactured by Bombardier Inc

Ross ruled Canada-based Bombardier received government subsidies and sold its C-Series jets below cost price in the United States, a step likely to lead to tariffs of more than 200 per cent on the plane.

United States secretary of commerce Wilbur Ross has found in favour of United States-based manufacturer Boeing in a dispute over aircraft sales.

"Today's decision validates Boeing's complaints about the Bombardier prices in the USA, prices that have harmed our workforce and the American industry", said Boeing in a press release.

In October, shortly after the preliminary tariffs were announced, Boeing's European archrival Airbus took a majority stake in the C-Series program, and announced the planes would be built at the Airbus plant in Mobile, Alabama. But the panel also appeared dubious about Bombardier's claims that the CSeries and the smallest versions of the 737 do not compete against each other at all. Bombardier and Boeing argued their cases Monday before the ITC, an independent, quasi-judicial US agency.

Boeing, which launched the petition over the sale of 75 CSeries aircraft to Delta Air Lines, says the decision validates its complaint.

The department has imposed tariffs of almost 300 per cent on imports of the jet after rival Boeing complained that it had received unfair subsidies.




"Unfortunately, the decision of the Department of Commerce is divorced from this reality and ignores commercial practices of the aeroespacial industry, including the launching price and the financing of multimillion airplane programmes", Bombardier said in a statement.

"Tariffs on the scale proposed by the US Commerce Department in the world's largest airline market, threaten to undermine the long-term economics of Bombardier's presence in Northern Ireland".

"A single large order, like Bombardier's sale to Delta, takes years of demand out of the market". The case has been a sore point in U.S. "This facility will provide USA airlines with a US -built plane thereby eliminating any possibility of harm due to imports".

No planes have yet entered the United States.

Bombardier was able to underprice the jets due to $3 billion in unfair government subsidies, Boeing says.

Canada's government will review the final determinations to consider next steps and options for appeal, she said. Boeing suffered another setback last week when Delta announced it was ordering 100 Airbus planes to renew its narrow-body fleet in a move that analysts viewed as a snub of Boeing over the case.

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