United States upholds 300 per cent tariff on Bombardier C Series jet
00:20, Dec 22, 2017
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Bombardier's C Series 100- to 150-seat aircraft will face antidumping and countervailing duties of nearly 300 percent if shipped into the USA, the Commerce Department announced December 20. The final AD rate was set at 79.82 percent and the final CVD rate was set at 212.39 percent, down roughly 7 percent from the preliminary CVD.
An worldwide 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.
United States secretary of commerce Wilbur Ross has found in favour of United States-based manufacturer Boeing in a dispute over aircraft sales.
"Unfortunately, the Commerce Department decision is divorced from this reality and ignores long-standing business practices in the aerospace industry, including launch pricing and the financing of multi-billion dollar aircraft programs", said Mike Nadolski, Bombardier's vice president of communications and public affairs.
European planemaker Airbus SE, which is buying a controlling stake in the CSeries program and has a competing plane, has said it would add a second CSeries production line to a factory in Alabama, making it a US product for domestic airlines.
The legal battle began after USA aircraft maker, Boeing registered a complaint against Bombardier, claiming that the company was selling its goods at a far lower price in the United Sates.
Boeing celebrated its victory Wednesday.
Boeing launched the trade case in April, arguing that governments in Canada and Britain subsidized the plane's development which allowed Bombardier to sell it at unfairly low prices. The trade dispute stems from a complaint by USA aerospace giant Boeing against its Canadian rival that found a receptive ear in President Donald Trump, whose "America First" agenda has included taking a tough line in matters of worldwide commerce. Bombardier and Boeing argued their cases Monday before the ITC, an independent, quasi-judicial US agency.
"A single large order, like Bombardier's sale to Delta, takes years of demand out of the market".
Freeland also called the duties "highly punitive to aerospace workers on both sides of the border", pointing to "a highly integrated production and supply chain" that includes Bombardier parts suppliers in both Canada and the United States.
Bombardier doesn't deny that Delta received a good price.
Canada's government will review the final determinations to consider next steps and options for appeal, she said.
The U.S. planemaker said Bombardier failed to cooperate in a U.S. investigation providing pricing information to the United States.
Bombardier plans to build the planes in Mobile, Alabama, where Airbus assembles narrow-body jets.
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