Washington, Ottawa clash in Bombardier trade fight

Bombardier Loses Bid

US confirms 300% duties on disputed Bombardier jets, a win for Boeing

The Department of Commerce has affirmed the preliminary determination it made in the fall that Canadian aircraft manufacturer Bombardier should pay combined tariffs of 300% on sales of its 100-seat to 150-seat C Series jets.

The Commerce Department's decision could be overturned if the United States International Trade Commission finds that Boeing did not suffer material injury as a result of the Delta sale, the Financial Post reported Wednesday.

Foreign Affairs Minister Chrystia Freeland said Ottawa is determined to defend Canadian companies and workers against protectionism.

Canada's government will review the final determinations to consider next steps and options for appeal, she said.

Today's ruling maintained a preliminary anti-dumping duty while slightly lowering the massive preliminary countervailing duty, reducing the overall duties on the C-Series from 299.45 per cent to 292.21 per cent.

The US Commerce Department announced on 20 December that Bombardier CS100s ordered by Delta Air Lines could face a 292.21% tariff if they cross into the U.S. in a partially or fully assembled state.

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In the progress of the trade dispute, Bombardier agreed to sell a majority interest in the CSeries program to Airbus, intensifying the completion in that product category for Boeing. "The U.S. decision to impose these duties is an overreaction from a government committed to protectionist policies, an overreaction that will put American jobs at risk as well". The three countries have been struggling to update the 23-year-old pact. The tariffs were initiated in response to a complaint by Boeing regarding government subsidies received by Bombardier by the federal and Quebec governments. Speaking after the verdict, Bombardier said, "Unfortunately, the Commerce Department decision is divorced from...reality and ignored long-standing business practices in the aerospace industry, including launch pricing and the financing of multibillion dollar aircraft programs".

No planes have yet entered the United States.

"The C Series would not even exist at this point but for those subsidies", the company said in a statement.

Bombardier criticised the near-300% duties, saying its plan of partnering with the European company Airbus to launch the CSeries assembly from a production line in Mobile, Alabama, would make it an American company.

Boeing stated the decision validated its complaints about Bombardier's aircraft pricing in the United States, "pricing that has harmed our workforce and USA industry". "This facility will provide USA airlines with a US -built plane thereby eliminating any possibility of harm due to imports".

Delta is expected to wait for that new plant to open before taking delivery of their order.

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