Canadian Plane Company Bombardier Wins Trade Fight With Boeing

Bombardier ruling due Friday amid spate of US protectionism

Ruling Due In Boeing Trade Spat; Trump At Davos: Investing Action Plan

The Canadian aerospace firm which faced damaging import tariffs on one of its jets has won a trade dispute in the United States.

Boeing, the American aerospace giant, claims Canada's Bombardier unfairly benefited from government bailout subsidies. The U.S. government could take the case to the World Trade Organization.

Mrs May had unsuccessfully lobbied Donald Trump not to impose the restrictions at the time. It has likewise added to strains between the USA furthermore, Canada, as the Trump organization tries to renegotiate terms in the North American Free Trade Agreement, or NAFTA.

Three months ago, with the jetliner's access to the USA market in doubt, Bombardier turned to a powerful partner: Airbus SE.

The government filing also said it would be inappropriate for the commission to make any decision about parts imported from Canada because the Department of Commerce, which controls the scope of the investigation, didn't reach a conclusion on parts.

"He's got an independent hand on all of those", said Edward Alden, a trade policy expert at the Council on Foreign Relations.

Taoiseach Leo Varadkar tweeted: "Very pleased that Bombardier won its case to stop USA trade trade tariffs at the ITC". And it means duties totalling almost 300 per cent imposed by the U.S. Department of Commerce on the C Series will be called off.

For Airbus, which by year-end should own a majority of the CSeries program, the ITC ruling counts as a big win.

The 4-0 decision is defeat for Boeing, which had argued that Bombardier's trade practices were illegal and harmful to its business and means that almost 300 percent duties recommended by the Trump administration previous year won't be applied to the planes.

Commerce Department officials proposed combined duties of up to 300 percent on the Canadian jets.


Delta is expected to take delivery of its first CS100 in the near future.

Boeing could appeal to the International Court of Trade in NY. Bombardier projects passenger jets carrying 100 to 150 passengers will generate about 6,000 orders globally over the next 20 years.

"Boeing's previous attempts to exclude Embraer from the ITC's analysis has resulted in a fundamentally flawed assessment of the market that we believe needs to be addressed", he wrote in an email.

The news sent the Canadian company's stock shooting up. USA -listed shares of Airbus, which has taken a majority stake in the C Series line, rose 2.9%.

Remarkably, the unanimous vote showed that despite Bombardier's reluctance to answer questions to the Department of Commerce, Boeing was unable to provide evidence that the CS100 was, in fact, damaging the weak sales of the Boeing 737-700.

The trade panel's ruling is "a victory for innovation, competition, and the rule of law", Bombardier, which spent more than $6 billion to develop the C Series, said in a statement. It has also added to tensions between the USA and Canada, as the Trump administration seeks to renegotiate terms in the North American Free Trade Agreement, or NAFTA.

The Canadian government, keen to rescue Bombardier, invited Boeing last summer to discuss some resolution of the trade dispute and a possible CSeries partnership. "We will carry on full steam with our CSeries project, focusing on addressing the needs of our airline customers and creating more and new, high-skill manufacturing jobs in the United States". Last year, with the plane's access to the USA market in doubt, Bombardier agreed to hand control of the program to Airbus SE in exchange for the European planemaker's marketing muscle and manufacturing expertise. Airbus executives argued that moving production in that way should allow them to avoid the tariff.

"It is also a victory for USA airlines and the US traveling public", according to a statement from Bombardier.

Boeing was little changed at $343.22, missing out on a defense-industry rally spurred by a report that the White House wants to increase defense spending more than 7 percent in the 2019 budget.

"There is no joint venture". Its class B shares ended up more than 15% at C$3.34. "The parties have not broken ground on anything in Mobile related to the joint venture, let alone a full C Series production facility". The two companies have not yet announced a finalized deal.

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