Thursday, 13 December, 2018

US Trade Panel Overturns Bombardier Tariffs

US Trade Panel Overturns Bombardier Tariffs US Trade Panel Overturns Bombardier Tariffs
Nellie Chapman | 27 January, 2018, 16:05

Bombardier also called it a victory for USA airlines and the American travelling public. The C Series is the most innovative and efficient new aircraft in a generation.

"The U.S.is wide open to sell a lot of C Series", he added.

In fall 2017, Bombardier and Airbus announced a partnership to build and market the C Series jets, and said their plans included building a new final assembly line in Mobile, Ala., where Airbus already assembles its A320 family.

Under a deal with Airbus, which sees the European aircraft maker take a majority stake in the C Series program, C Series planes destined for the US market will be assembled in Alabama.

Most observers, including Bombardier and the Canadian government, had expected Bombardier to lose its case. "It's an American tribunal". Boeing fell less than 1 per cent to $342.09. None of the planes had yet been delivered to USA airlines, although Delta inked a $5 billion deal for them in 2016. The Canadian company had argued that Boeing did not have a comparable plane to offer Delta.

According to BBC News, most analysts had "thought the odds were stacked against Bombardier" after the Commerce Department ruled in Boeing's favor.

Chicago-based Boeing said it is disappointed by the decision but will review the commission's detailed opinions when they are released in the coming days.

Boeing vowed to continue to document the damage from "illegal subsidies and dumped pricing". "Global trade only works if everyone adheres to the rules we have all agreed to". "It was the right decision, and it's still the right decision, we're going to continue full steam with this".

The Commerce Department had threatened tariffs that would have quadrupled the cost of C Series jets that Delta ordered.

Bombardier and Delta's positions remained the same throughout the entire process; the 737-700 is a significantly larger aircraft than the CS100, thus they are not competing in the same market segment.

In September, the Commerce Department proposed a tariff of 219.6% on the Canadian jets, then added an additional 79.8% tariff the following month. That prompted Bombardier to sell a majority stake in its CSeries program to Airbus. Canadian officials had bitterly objected a year ago as the USA moved toward effectively barring Bombardier from the lucrative American market.

The 4-0 decision against Boeing is the latest twist in a long-running dispute between the USA and Canada involving the jetliner market and may help ease tensions between the two.

The dispute has strained relations between Boeing and Canada.

Now, Boeing finds itself in a situation in which it has alienated a key customer for its defense business and irked a key commercial customer in Delta Air Lines, while failing to block the USA expansion plans of its Canadian rival. "It was obvious Boeing was trying to stretch the definition of injury pretty significantly".

ONE thousand Northern Irish jobs have been saved after an aircraft firm won a case against huge USA tariffs slapped on their import of new passenger jets. The decision also opens the door for Bombardier to add new United States customers while potentially easing trade tensions with Canada and the UK. The U.K. has a Boeing P-8 maritime surveillance plane on order, along with a fleet of new Apache attack helicopters.