Boeing seeks tariffs order on Bombardier C Series

TORONTO Quebec-based Bombardier Inc. is facing a potentially lengthy and “serious” investigation that could affect its ability to deliver its C Series jets in the United States market in the future, according to a trade expert.

On Thursday, Boeing filed a petition to the U.S. Department of Commerce and U.S. International Trade Commission seeking an anti-dumping, countervailing duty order against the sale of Bombardier’s C Series aircraft.

“Propelled by massive, supply creating and illegal government subsidies, Bombardier Inc. has embarked on an aggressive campaign to dump its C Series aircraft in the United States,” reads the petition.

While Bombardier dismissed the allegations as “absurd,” Boeing’s complaint has triggered the same type of investigation that led to the Trump administration slapping the Canadian softwood lumber industry with new import duties that range from three to 24 per cent.

“Bombardier is about to deal with a lengthy investigation in the U.S. that’s going to involve a significant amount of work on Bombardier’s part,” said Jesse Goldman, a partner of international trade and investment at Bennett Jones LLP in Toronto. “They are facing some pretty serious allegations.”

Boeing alleges Bombardier has been aggressively selling its C Series jets in the U.S. market at the “absurdly low price” of US$19.6 million, when the planes costs more than US$33 million to produce.

However, Bombardier spokesperson Simon Letendre said in an emailed statement Friday that “Boeing’s number is wrong.”