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Boeing Denounces Decision to Overturn Tariffs on Bombardier Aircraft

Los Angeles, United States - March 9, 2015: Boeing manufactuing facility. Boeing manufactures and sells aircraft, rotorcraft, rockets and satellites. It is the second-largest defense contractor in the world.

The USITC has blocked hefty tariffs on Bombardier CSeries aircraft proposed by the U.S. Commerce Department last year over claims of unfair trade practices.

In September 2017, the U.S. Commerce Department assigned punitive tariffs of more than 200 percent on the import of Bombardier CSeries aircraft. The significant duty was ordered after U.S. aviation giant Boeing complained that its much smaller Canadian rival was taking unfair advantage of government subsidies and attempting to dump cheap jet planes in the competitive U.S. market.

The Commerce Department’s preliminary order was not put in place right away, pending a review by the International Trade Commission (USITC). On Friday, this government agency blocked the Commerce Department’s levy order. In its decision, the regulatory agency found that there was little evidence that Bombardier’s practices had harmed U.S. interests or Boeing in any significant way.

Not surprisingly, Boeing officials were not at all pleased with last week’s ruling.

“Boeing remains confident in the facts of our case and will continue to document any harm to Boeing and our extensive U.S. supply chain that results from illegal subsidies and dumped pricing,” the company said in a harshly worded statement. “We will not stand by as Bombardier’s illegal business practices continue to harm American workers and the aerospace industry they support. Global trade only works if everyone adheres to the rules we have all agreed to. That’s a belief we will continue to defend.”

Bombardier, on the other hand, celebrated the decision, which could have cause the price tag of its CSeries aircraft from nearly tripling, had the ruling gone the other way.

“Yesterday’s decision from the ITC is a victory for innovation, competition, and the rule of law,” The Montreal-based firm tweeted in response to the huge regulatory triumph. “It is also a victory for all the supporters who have worked with us on this case.”

The company thanked the commission as well as supporters from around the globe including Canadian PM Justin Trudeau, UK PM Theresa May, the European Commission, Sinn Fein, Delta Airlines and U.S. Senator John McCain, among others. Though based in Canada, Bombardier employs some 4,000 workers in Northern Ireland and nearly 7,000 workers in the U.S.

[Photo: Shutterstock]

Comments are Closed.
mvoight January 30, 2018

A tariff of over 200 percent? That prices the foreign product out of the market, and allows the domestic producer to dramatically increase its price. Who pays? The consumer pays...........

BlueThroughCrimp January 29, 2018

How's those at least $1Bn tax breaks doing for Boeing?