Bombardier wins case against Boeing over import tariffs

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Sharecast News | 26 Jan, 2018

Updated : 21:21

Plane maker Bombardier has won a legal battle in the US against import tariffs on its C-series aircraft, the company said on Friday .

The decision, which could save thousands of jobs at Bombardier's Northern Ireland factory, was announced by the US International Trade Commission (ITC), with all four members voting against complainant Boeing.

US President Donald Trump’s administration had threatened to impose duties of 292% after Boeing had complained to US authorities that the rival jets were being sold to the US airline Delta below production cost and given illegal subsidies from the UK and Canadian governments.

The ITC said Boeing was "not materially injured or threatened with material injury by reason of imports of 100- to 150-seat large civil aircraft from Canada that the US Department of Commerce has determined are subsidized and sold at less than fair value".

"As a result of the US ITC’s negative determinations, no antidumping or countervailing duty orders will be issued," added.

In a statement, Bombardier said the decision was a "victory for innovation, competition, and the rule of law".

"It is also a victory for Us airlines and the US traveling public. The C Series is the most innovative and efficient new aircraft in a generation. Its development and production represent thousands of jobs in the United States, Canada, and the United Kingdom."

"We are extremely proud of our employees, investors and suppliers who have worked together to bring this remarkable aircraft to the market. With this matter behind us, we are moving full speed ahead with finalizing our partnership with Airbus."

"Integration planning is going well and we look forward to delivering the C Series to the US market so that US airlines and the US flying public can enjoy the many benefits of this remarkable aircraft."

However, Boeing said it was not taking the decision lying down.

"We are disappointed that the International Trade Commission did not recognize the harm that Boeing has suffered from the billions of dollars in illegal government subsidies that the Department of Commerce found Bombardier received and used to dump aircraft in the US small single-aisle airplane market," it said in a statement.

"While we disagree with the ITC’s conclusion today, we will review the commission’s more detailed opinions in full as they are released in the coming days. Boeing remains confident in the facts of our case and will continue to document any harm to Boeing and our extensive US supply chain that results from illegal subsidies and dumped pricing."

"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."

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