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US Slaps Duties on Canadian Jet, Raising Trade Tensions
January 19 2018, 01:46 | Perry Erickson
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Boeing's complaint that its 737-800 and Max 8 planes are facing unfair competition doesn't hold water, he said.
In a statement, Canadian Foreign Minister Chrystia Freeland said her government strongly disagreed with the ruling and would "always defend Canadian companies and Canadian workers against unfair and costly protectionism".
The controversial tax ruling is the result of a long-running dispute between Bombardier and Boeing, which has claimed that unfair state subsidies from the United Kingdom and Canada had helped Bombardier win a major deal to supply up to 125 of the jets to U.S. airline Delta.
'The threat of punitive tariffs on the C-Series will cast a shadow over Bombardier's future unless the company can source alternative and substantial sales outside the U.S. market'.
"Boeing was the big victor in the last defence review", Sir Michael said, "this is not the behaviour we expect from a long term partner".
"This is not the behaviour we expect of Boeing and could indeed jeopardise our future relationship with Boeing."
The US court decision is reportedly a huge blow for May, who has made trade relations with the US a key component of the UK's trade strategy after Brexit.
Earlier this week USA air carrier JetBlue sided with Bombardier in the dispute.
She said her party would use its influence in government to protect the jobs.
The row has escalated in the United Kingdom as the decision could result in Bombardier closing down it's Belfast factory and leaving it's Irish based-employees, jobless.
No matter how the decision comes down, Jeanniot says Bombardier will find a buyers for the innovative CSeries jet.
Ulster Unionist East Belfast MLA Andy Allen called on the UK Government to send a clear and uncompromising message to Boeing that other contracts could be reconsidered in the UK.
However, aerospace analyst Howard Wheeldon said: "Threats by both the Canadian and British Prime Ministers to halt purchase of Boeing military planes unless the dispute can be sorted out are hardly conducive to finding a satisfactory way out of the current impasse".
With one preliminary ruling out of the way, the Commerce Department will now turn its attention to whether Bombardier "dumped" its CS100s into the US market by selling them below cost.
Earlier Mrs May, who has directly lobbied US President Donald Trump over the dispute, expressed regret at the decision.
The scale of the tariff was higher than what Boeing had sought, and Bombardier could be hit by even more tariffs as the regulatory process continues.
Bombardier, which described the proposed tariff as "absurd", rejected its rival's claims.
An global trade dispute with major implications for jobs in Northern Ireland is unjustified and unwarranted, the British Government said.
"While Delta has publicly spoken highly about the C Series, the risk of this order being rescinded will continue to weigh on Bombardier's share price, " Kevin Chiang, a CIBC World Markets analyst in Toronto, said in a note to clients Wednesday.
"USA trade laws were never meant to be used in this manner, and Boeing is seeking to use a skewed process to stifle competition".
The manufacturer, which has been a major employer in Northern Ireland for 30 years, is due to begin delivering a blockbuster order for up to 125 new jets to Atlanta-based Delta Airlines in 2018.