USA escalates trade dispute with United Kingdom and Canada over Bombardier

USA escalates trade dispute with United Kingdom and Canada over Bombardier

USA escalates trade dispute with United Kingdom and Canada over Bombardier

A week after the imposition of countervailing duties of around 220 % on the CSeries aircraft to Bombardier, Washington returned to the charge with anti-dumping duties of 79,82 % at the end of a preliminary decision is likely to be, again, to raise the indignation in business circles, trade union and political.

The ruling is also bound to stoke tensions between the United States and two key allies, Canada and the UK, which expressed disappointment with last week's ruling.

"These anti-dumping duties on Bombardier's C Series aircraft unfairly target Canada's highly innovative aerospace sector and its more than 200,000 workers - and put at risk the nearly 23,000 U.S. jobs that depend on Bombardier and its suppliers", said Chrystia Freeland, Canada's foreign affairs minister.

Bombardier did not provide the information requested, according to the Commerce Department.

Canadian Prime Minister Justin Trudeau, who called last week's decision disappointing and vowed to fight for Canadian jobs, has warned that his government won't buy Boeing military jets unless it drops the case.

"The United States is committed to free, fair and reciprocal trade with Canada, but this is not our idea of a properly functioning trading relationship", Commerce Secretary Wilbur Ross said in a news release.

The U.S. decision can be appealed to the U.S. Court of International Trade, the North American Free Trade Agreement or the World Trade Organization, dragging out the conflict.

Components of the C-Series jet are manufactured at a purpose-built factory in east Belfast and many other local firms are involved in the supply chain.

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Bombardier pointed out that the CSeries 100- to 150-seat airline carrier, still to be manufactured to fill the Delta order, will be built with half of the parts coming from US suppliers.

The U.S. government sided with Boeing.

The row has caused concerns over jobs in the United Kingdom, with Bombardier employing some 4,000 people in Northern Ireland.

It claimed its rival was selling the C-Series jets below cost price after taking state subsidies from the Canadian and British governments.

Boeing applauded the decision in a statement, calling Bombardier's CSeries pricing "an illegal effort to grab market share in the US single-aisle airplane market". The Canadian manufacturer argues that Boeing doesn't make planes that compete with the aircraft - an assertion that Delta backed up in its testimony before the International Trade Commission.

The programme also received $1bn from the Canadian provincial government in Quebec in 2015 when its fortunes appeared to be ailing.

The Commerce Department ruled in favor of a complaint from Boeing and said it would add an 80% tariff to imports of Canadian jets carrying 100 to 150 passengers, hitting the new Bombardier CSeries jet.

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