USA slaps Bombardier with 300 percent in duties after Boeing complaint


The U.S. Department of Commerce intensified the debate over trade violations alleged against Bombardier Inc., in the matter of its sale of CSeries aircraft to Delta Air Lines.

The Canadian government has submitted an expression of interest to buy used Boeing F/A-18 Hornet fighter jets from Australia amidst a trade dispute with the United States.

The 80 per cent duty comes on top of duties of almost 220 per cent Commerce announced last month.

Specifically, Boeing charges that Bombardier previous year sold Delta Air Lines 75 CS100 aircraft for less than it cost to build them. Boeing's complaint initially sought only 80 percent. The case is a victory for US rival Boeing Co.

"This is a disappointing statement but hardly surprising given last week's preliminary ruling sided with Boeing", a British government spokesman said on Saturday.

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"The UK government must heed the call of Bombardier's Northern Ireland workers and summon Boeing to an urgent summit involving prime minister Theresa May and the Canadian prime minister Justin Trudeau and trade unions". Some analysts said the muted response reflected a view that the penalties might not actually be applied.

The latest duty matches the amount originally proposed by Boeing, before it revised its request to 143 per cent because of Bombardier's refusal to provide certain information to the Commerce Department.

"Bombardier always has the option of coming into full compliance with trade laws", Boeing added.

Freeland said that Chicago-based Boeing "is manipulating the USA trade remedy system" to block Bombardier's C Series from being sold in the U.S.

Foreign Affairs Minister Chrystia Freeland said she was extremely disappointed, but not surprised given the "baseless and absurdly high" duties last week.

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Mr Clark said Boeing does not even make a competing aircraft in the 100-125 seat sector, which is where the C-Series model sits.

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

The US is committed to free, fair and reciprocal trade with Canada, but this is not our idea of a properly functioning trading relationship. "We will continue to verify the accuracy of this decision, while do [ing] everything in our power to stand up for American companies and their workers".

But the industry is not so simple.

The Bombardier aircraft subject to the investigation have not yet been imported into the US. The plane supports an estimated 22,700 jobs and Bombardier's aerospace division spent $2.14 billion in the United States past year, according to the company and documents seen by Reuters.

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