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U.S. confirms 300% duties on disputed Bombardier jets, a win for Boeing

U.S. confirms 300% duties on disputed Bombardier jets, a win for Boeing

The fight, which has contributed to escalating trade tensions between the U.S. and Canada, stems from a 2016 sale of 75 C-Series jets to Delta Air Lines.

"This decision is based on a full and unbiased review of the facts in an open and transparent process", Commerce Secretary Wilbur Ross said in a statement.

Today's ruling maintained a preliminary anti-dumping duty while slightly lowering the massive preliminary countervailing duty, reducing the overall duties on the C-Series from 299.45 per cent to 292.21 per cent. Another duty of 212.39% was set to offset Bombardier's benefits from unfair subsidies provided by the governments of Quebec, the United Kingdom and Canada.

"The United States is committed to a free, fair and reciprocal trade and will always stand up for American workers and companies being harmed by unfair imports", he adds.

As a result, the commerce department determined that exporters from Canada sold 100- to 150-seat large civil aircraft in the United States at 79.82 percent less than fair value.

Bombardier plans to build the planes in Mobile, Alabama, where Airbus assembles narrow-body jets.

Freeland also called the duties "highly punitive to aerospace workers on both sides of the border", pointing to "a highly integrated production and supply chain" that includes Bombardier parts suppliers in both Canada and the United States.

The International Trade Commission will make its final injury determination by February 1, and if injury is found, Commerce will issue AD and CVD orders.

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"The Government of Canada is deeply troubled by the protectionist nature of Boeing's allegations, which seek to advance its market dominance by excluding Bombardier's C Series aircraft from the USA market", Freehand said.

The Administration's approach aligns with Boeing's long-term effort to push back against improper government subsidies to competitors, even as the company has been found by the World Trade Organisation to benefit from more than $1 billion of unfair benefits from the state of Washington.

Bombardier was able to underprice the jets due to $3 billion in unfair government subsidies, Boeing says.

In a hearing on 18 December, the four commissioners in the ITC betrayed no obvious slant, grilling executives and experts from Bombardier and Boeing about equally. Bombardier calls Boeing's criticism unfounded, saying that the US company's entire case has been overtaken by events.

The partnership with Airbus means there is "no chance Boeing will be harmed by imports", said Mike Nadolski, vice president of public affairs at Bombardier.

Boeing said Bombardier hurt its chances of selling its 737 airplane in the USA, which Bombardier denies.

Bombardier argues that they wouldn't since Boeing does not make an aircraft the size of the 100- to 130-seat CS 100.