Freeland reiterates backing for Bombardier

• Foreign Affairs Minister Chrystia Freeland reiterated her government’s support for Bombardier Inc. in its trade dispute with Boeing Co. during a visit to Montreal on Monday.

Bombardier is currently under investigation by the United States International Trade Commission, after Boeing complained t hat the Montreal- based aircraft maker took advantage of government subsidies in Canada to price its planes below cost in an effort to gain market share in the U.S.

Boeing, which has also complained U.S. Department of Commerce, wants the U. S. to place a duty on Bombardier’s CSeries jetliner.

“We absolutely believe that this challenge is without merit, we think that Bombardier and the government are fully compliant with our international trade obligations,” Freeland told reporters. “We are standing very firmly in support of Bombardier, in support of the Canadian aerospace industry and in support of Canadian workers.”

The government had planned to purchase 18 Super Hornet fighter planes from Boeing, a decision that is now being reconsidered as a result of the dispute.

“We are reviewing our military procurement position with regard to Boeing,” Freeland said.

The foreign minister also addressed another trade dispute affecting Quebec businesses — softwood lumber.

In April, the U. S. Department of Commerce began charging duties of between three and 24 per cent on softwood lumber from Canada, claiming Canada’s softwood lumber industry receives unfair government subsidies.

Freeland said negotiations continue, and that U.S. Commerce Secretary Wilbur Ross is very involved, but the sides remain far apart.

“We continue to work very hard on the softwood lumber issue, I think it does bear repeating for Canadians, we are absolutely confident of the rightness of our position, we believe that the countervails imposed by Congress are punitive and without foundation,” Freeland says.

In the past, Canada has turned to tribunals under NAFTA and the WHO to have U.S. duties overruled.

“On past occasions, we have won at every level. We are confident we will continue to do so,” Freeland said. “At the same time, we remain of the view that a negotiated settlement would be the best outcome for Canadians and Americans.”

Freeland says a settlement would be good for Americans who want to buy a home or build a deck.

“The fact is the U. S. economy needs our lumber, the U.S. industry, on its own, does not produce enough lumber for the U. S economy,” Freeland said. “We really believe that in law and economic reality, there are good grounds for reasonable parties to reach a negotiated agreement.”