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Theresa May threatens U.S. with trade war over Bombardier row

30 September 2017

Boeing claims Bombardier's new C Series aircraft have an unfair advantage over its own similar aircraft in the United States market due to the nature of subsidies the company receives from the Canadian and British governments.

But Boeing conceded no ground, accusing Bombardier of illegally dumping its products in the US single-aisle airplane market out of desperation. "The magnitude of the proposed duty is absurd and divorced from the reality about the financing of a multibillion-dollar aircraft program", Bombardier said.

Boeing accuses Bombardier of dumping its new CSeries passenger jet in the US market and says the aircraft is being unfairly subsidized by Canada, a charge the Canadian firm denies. "It's imperative the British Government works to protect these vital jobs - the imposition of the tariffs could make Bombardier question remaining in Northern Ireland, where it has operations in four locations", Ms. McGregor said.

The union representing 7,000 Bombardier aerospace workers also denounced the tariff, accusing Boeing executives of "acting like bullies by manipulating American laws and taking advantage of Washington's penchant for protectionism to close the USA market to the CSeries".

Despite this, the US Department of Commerce ruled that Bombardier had received unfair, anti-competitive support and subsidies from the Quebec regional government, a ruling in line with Trump's "America First" trade protectionist platform.

Although Bombardier cannot legally skirt the measure by agreeing to pay any duty directly on Delta's behalf, trade lawyers say it could technically import the jets itself through a local subsidiary in a way that would be neutral for Delta.

May promised that the British government would continue working with Bombardier to protect the important jobs in Northern Ireland.

The Commerce Department sided with Boeing and on Tuesday imposed a almost 220 percent tariff on the jets.

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The Northern Ireland global helped them to a respectable 10th-placed finish in the Premier League last season. The former England man had the option of staying at Goodison Park, but did not want his career to peter out.

Canada's foreign affairs minister, Chrystia Freeland, said in a statement that Canada "strongly disagrees" with the ruling and that it is "clearly aimed at eliminating Bombardier's C Series aircraft from the USA market". "The U.S. government should reject Boeing's attempt to unfairly tilt the playing field in its favor and to impose an indirect tax on the flying public through unjustified import tariffs". If the USA imposes the countervailing duty on CSeries, Canada is expected to take its case to the WTO.

This rapid, US-only action contrasts with the long-running battle over Airbus and Boeing subsidies, which has been ongoing at the World Trade Organization (WTO) since 2005.

What's more, the aircraft industry is a prestigious sector that provides high-paying manufacturing jobs, which makes any attack on it politically sensitive. -Canada relations. Nonetheless, the Quebec government will continue to promote open markets, he said.

"At the end of the day, as often happens in this type of dispute, the Canadian side will win, " he told The Canadian Press in NY.

Boeing's complaint against Bombardier drew a backlash even before Tuesday's decision.

Analyst Richard Aboulafia of the Teal Group said Bombardier has no choice but to stay the course and hope things get better.

With reporting from Andy Blatchford in NY and Ross Marowits in Montreal.

Theresa May threatens U.S. with trade war over Bombardier row