Boeing-Bombardier spat puts US-Canadian trade deals in spotlight

A Bombardier Global 7000 aircraft mock up is shown in Toronto on Tuesday

Earlier this fall, the U.S. Commerce Department sided with Boeing in a pair of preliminary decisions, proposing almost 300 percent anti-dumping duties on the planes, which are under contract to Delta Air Lines.

"The Commerce Department announced total duties of 292.21 percent - a final antidumping rate of 72.82 percent and a final countervailing duty rate of 212.39 percent - in a case brought by Chicago-based Boeing".

An global row between the US and Canada has kicked off again as the US Department of Commerce upheld massive tariffs on the import of Bombardier's C Series jet.

Canada vowed to fight the Commerce Department's determination.

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

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"Today's decision validates Boeing's complaints regarding Bombardier's pricing in the United States, pricing that has harmed our workforce and USA industry", it added.

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.

Bombardier argued Boeing's large 737 order book shows there has been no adverse impact from its CSeries jet and that the USA planemaker does not manufacture a jet that competes with the new model.

"Today's decision validates Boeing's complaints regarding Bombardier's pricing in the United States, pricing that has harmed our workforce and USA industry", Boeing said in a statement.

"Boeing does not produce an aircraft in the same class as Bombardier's C Series and didn't even bid for the Delta contract it is complaining about, which leaves its complaint totally without merit".

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"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".

He also said that Boeing's claim was meritless since they don't have an aircraft that can compare to the CSeries.

"A single large order, like Bombardier's sale to Delta, takes years of demand out of the market. This facility will provide USA airlines with a US -built plane thereby eliminating any possibility of harm due to imports". The U.S. decision means that the relations between the country and its neighbor, Canada are likely to be terribly strained.

It includes a 79.82% tariff to offset a Commerce Department ruling that Bombardier engaged in price dumping, meaning it sold the CS100s to Delta below its fair market value by that amount.

The company's statement is an echo of one made by Canada's ambassador to the United States, David MacNaughton.

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Boeing says the CSeries benefited from hundreds of millions of dollars in launch aid from the governments of Canada and Britain and a $1 billion equity infusion from the province of Quebec.

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