U.S. trade body backs Canada's Bombardier over Boeing in tariff spat
- Author: Eleanor Harrison Jan 27, 2018,
Jan 27, 2018, 16:48
On Friday, Bombardier tweeted a photo of Bombardier and Airbus executives meeting in Montreal "to discuss integration planning".
He hailed the efficiency and innovative qualities of the C Series, but said it is necessary to move ahead on its "strategic partnership" with Airbus.
Chief on the list of US sales prospects is JetBlue Airways Corp.
By voting in Bombardier's favor, the commission has certified that it does not believe Boeing's business has been materially harmed by Bombardier's trade practices, a key qualifier for imposing tariffs. What's not certain is whether this is good news, or bad news, for the Port City.
Bombardier can begin shipping C Series jets to Delta Air Lines immediately following a trade tribunal ruling.
The decision by the U.S. International Trade Commission is the latest twist in U.S. Republic has a firm order for 40 jets, but it reached a confidential settlement with Bombardier in 2016 to defer deliveries for an undisclosed period.
In a statement, Bombardier said the ITC's decision was a "victory for innovation, competition, and the rule of law".
The US company had argued its business could be damaged by Bombardier's imports - but the USITC ruled that the Canadian company's aircraft "do not injure US industry".
Unfair competition threatened the survival of the 737 Max 7, the smallest of Boeing's upgraded single-aisle jets, the US aerospace giant said. Boeing is in talks about a potential combination with the Canadian company's top rival, Embraer SA, which sells planes that directly compete with the C Series.
"It's great news, it threw me off my chair, to be honest", said David Chartrand, the Quebec coordinator of the International Association of Machinists and Aerospace Workers, which represents 6,000 workers at Bombardier plants in the Montreal area.
"It's not over yet", Leslie, whose minister is responsible for U.S.
Politicians and union leaders have welcomed a ruling which stops the USA imposing huge 292% import tariffs on planes partly made by British workers.
The US International Trade Commission voted 4-0 that there was no injury to US manufacturers, which effectively forces President Donald Trump's Commerce Department to reverse course on the retaliatory measures created to protect Boeing. Right now, that 300 million-dollar deal between Bombardier and Airbus is still scheduled to close later this year.
"There is no returning to the status quo", Bombardier said in a filing. "Absolutely it'll get built". But the trade commission, a quasi-judicial body of trade experts, disagreed. The closing is expected to occur later this year.
In fall 2017, Bombardier and Airbus announced a partnership to build and market the C Series jets, and said their plans included building a new final assembly line in Mobile, Ala., where Airbus already assembles its A320 family.