United States slaps new 80pc duty on Bombardier

Boeing whose Canadian operations include a technology division in Winnipeg touts its $4-billion US annual contribution to the Canadian economy in a new public relations campaign

Bombardier called Washington's latest decision "an egregious overreach and misapplication" of US trade laws to prevent its C Series aircraft from entering the USA market, and accused Boeing of also selling planes below production cost "for years".

"Canada expects to receive a response by the end of this year that will provide details regarding the availability and cost of the aircraft and associated parts that Canada is considering", the Canadian government said in a statement.

Canadian Foreign Affairs Minister Chrystia Freeland said she was "extremely disappointed" in the latest United States decision, vowing to defend the country's aerospace industry against "irresponsible and protectionist trade measures" that also hurt some USA workers.

Freeland said: "Given the baseless and absurdly high preliminary countervailing duties announced on September 26, today's news comes as no surprise".

Now, Commerce has indicated that an anti-dumping penalty of 79.82% should be added to the duty.

Canada's foreign ministry said Boeing was "manipulating the USA trade remedy system" to keep the CSeries out of the country. If the preliminary determination stands, the U.S. International Trade Commission will proceed with its countervailing investigation against Bombardier and release its decision in February.

Bombardier said it was confident that the ITC would find Boeing was not harmed, calling the Commerce Department decision a case of "egregious overreach".

A Bombardier union said it wasn't surprised by the new duty given the 48 per cent increase in the number of dumping allegations since the Trump administration took office.

The row between Boeing and Bombardier comes just as the United Kingdom is looking to negotiate a number of major worldwide trade deals.

He said workers will fight even harder to get the duty reversed.

Boeing petitioned the government in April after its smaller rival secured a deal for up to 125 of its CS100s with Delta in 2016. The program is expected to generate more than US$30 billion in business over its life and support more than 22,700 American jobs in 19 states.

The import tariff threatens about 1,000 jobs, out of a total of 4,000 employed by the Canadian company in Northern Ireland.

Both Britain and Canada have threatened to cancel contracts with Boeing and avoid buying military equipment but it is unclear how they will react to the latest round of trade tariffs.



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