Bombardier, Boeing set for last round in trade fight

O T TAWA The bitter dispute between Bombardier and Boeing will enter a critical phase next week, when the two aerospace rivals appear before an all-important trade tribunal whose ruling will ultimately decide the fight.

The U.S. International Trade Commission will hold hearings Monday in which Boeing will explain why it believes it was injured by Bombardier’s landmark deal to sell CSeries jets to a U.S. airline.

Montreal-based Bombardier will have its own chance to fire back by arguing that the multibillion-dollar deal involving up to 125 CSeries jets for Delta Air Lines had no impact on Boeing’s economic well-being.

Canada’s ambassador to the U.S., David MacNaughton, along with his British counterpart, are also expected to attend on behalf of their respective governments, which support Bombardier.

The hearings mark the last chance for all sides to appear before the commission before it issues a final ruling, likely early in the new year, which will determine whether every CSeries jet entering the U.S. is hit with a hefty duty.

The U.S. Department of Commerce proposed a 300-per-cent duty after finding that Bombardier broke trade rules by selling the CSeries planes to Delta at an unfairly low price with help from government subsidies.

Such a penalty was seen as a po- tential stake to the heart for the CSeries until European aerospace giant Airbus proposed to buy a majority stake in the planes and try to skirt any duties by assembling them in Alabama.

But that deal still hasn’t been approved by the federal government, which is looking at whether it would be a net benefit to Canada.

Boeing officials briefing reporters on background Friday also argued that any duties on the CSeries should apply to major components imported into the U.S., as well.

Still, the pressure is very much on Boeing to prove that it lost out because of the deal between Bombardier and Delta. That’s because the proposed duty will be thrown out unless the commission sides with Boeing. Some trade experts believe Boeing faces an uphill battle because it did not compete for the Delta contract.

But Boeing plans to argue that even though it did not compete for the Delta contract, the deal will result in an influx of heavily subsidized airplanes that will hurt its future opportunities.