US Trade Panel Overturns Bombardier Tariffs

Share

Commissioners voted 4-0 that Boeing didn't suffer harm from prospective imports of C Series planes.

If it concurs, the Secretary of Commerce will order tariffs, which will be enforced by the US Customs Service.

A month ago, the U.S. Business Department maintained obligations of about 300 percent it had slapped on the C Series traveler planes made by Bombardier, a win for Boeing.

Delta's position goes a little further: at the time of the tenure, Boeing just offered second-hand Embraer 190s. "We were saying that the complaint from Boeing was really not justified, and that it was abusive, and I guess the ITC agreed with us".

Boeing can appeal the case to either the Court of International Trade, part of the U.S. Federal Court System, or to a review panel organized under the NAFTA. Airbus delivered a major blow to its biggest rival, at practically no cost. Nevertheless, it is not clear if the legal process has deferred that expectation for later this year.

The ITC was expected to take the side of Boeing, which alleged it has been forced to lower it price of its narrow body 737's to compete with Bombardier, which it said had used subsidies from the government to dump the jet series during the sale in 2016 of 75 jets a prices it called absurdly low to Delta.

Bombardier spokesman Simon Letendre said the company and Airbus will proceed with the construction of the second assembly line for the US market.

In Wichita, Bombardier employs 1,600 people who assemble Learjet business jets, perform maintenance and overhaul all Bombardier business jet models, and flight test all of the company's aircraft including the C Series. Its development and production represent thousands of jobs in the United States, Canada, and the United Kingdom....

"The CSeries aircraft uses many suppliers in Quebec, so much of the industry will be able to benefit from potential sales in the American market", read the statement attributed to president Suzanne Benoît. Last year, with the plane's access to the USA market in doubt, Bombardier agreed to hand control of the program to Airbus SE in exchange for the European planemaker's marketing muscle and manufacturing expertise.

In October, Airbus acquired a majority stake in the C Series program from Bombardier and announced plans to move production of US-bound C Series jets to its plant in Mobile, Alabama, from Canada.

"We are frustrated that the International Trade Commission did not perceive the mischief that Boeing has experienced the billions of dollars in unlawful government appropriations that the Department of Commerce discovered Bombardier got and used to dump airplane in the USA little single-passageway plane market", Boeing said in an announcement.

It says it will continue to document any harm to Boeing from illegal subsidies and dumping pricing. "That's a belief we will continue to defend".

Aircraft manufacturer Bombardier has won its case against plans for huge tariffs on its United States imports which had put thousands of jobs at risk in Northern Ireland.

"Boeing's petition in this case is unprecedented in its overreach", Lichtenbaum told the commission.

Share