Ottawa defiant in aerospace trade war
Freeland vows to fight plans for 220% duty on sale of Bombardier jets to U.S. carrier
OTTAWA— News that the United States wants to impose a punishing 220-percent duty on the sale of Bombardier jets was met with a chorus of condemnation on both sides of the Atlantic, as Justin Trudeau expressed his distress in the House of Commons, British Prime Minister Theresa May lamented the decision and the Quebec premier claimed his province had “been attacked.”
The aerospace trade spat struck as offi- cials from Canada, the U.S. and Mexico wrapped up the third round of NAFTA talks in Ottawa this week.
Foreign Affairs Minister Chrystia Freeland told reporters at the conclusion of talks Wednesday that she had raised concerns about the plane tariff with U.S. trade representative Robert Lighthizer.
“I shared with him the absolute importance of this issue to Canada,” she said. “It’s a priority for the government of Canada and we’re going to continue to fight very, very hard.”
On Tuesday evening, the U.S. Department of Commerce announced its preliminary decision to slap a 219.6-per-cent tariff on Bombardier’s C Series jets.
The decision is in response to a complaint filed by Bombardier’s Americanbased aerospace competitor Boeing over the sale of 125 planes to the U.S. airline Delta.
Boeing contends that Bombardier is propped up by Canadian government subsidies that enable it to sell the jets at unfairly low prices in the U.S. market.
In recent years, Quebec has invested $1 billion in the firm, which employs thousands of people in the province.
The federal government has also given money to Bombardier: The Liberals announced in February that Ottawa would give the company $373 million in interest-free loans to support its aircraft projects over the next four years.
Tuesday night’s tariff announcement was quickly met with rebukes from union leaders, the Canadian Chamber of Commerce and government ministers.
May, the British prime minister, who denounced Boeing’s complaint during a visit to Ottawa last week, said Wednesday that she is “bitterly disappointed” in the U.S. move, and pledged to protect the 4,000 Bombardier jobs in Northern Ireland.
Speaking to reporters in Quebec City, Premier Philippe Couillard railed against the U.S. government decision; he accused Boeing of trying to snuff out competition from Montreal-based Bombardier and its “superior” products. He claimed “Quebec has been attacked” and called on Ottawa to take a strong stand against the U.S. aerospace giant.
“Not a bolt, not a part, (and), of course, not a plane from Boeing (should be) entering Canada until this conflict is resolved,” he said.
“Boeing may have won a battle, but let me tell you, the war is far from over and we shall win.”
Prime Minister Justin Trudeau told reporters the government is “disappointed” by the U.S. move and vowed to fight for Canadian jobs.
Later, during question period, Trudeau called the “punitive” duties “completely unfounded and without merit. We continue to stand by the Canadian aerospace industry and we will fight for it every step of the way.”
In an emailed statement, Boeing spokesperson Dan Curran said the company is “not suing or attacking Canada.” He said the company’s dispute is with Bombardier, which sold its C Series jets at “absurdly low prices made possible by major injection of public funds, in violation of U.S. and global trade laws.”
He added that Boeing directly employs 2,000 people in Canada, while more than 15,000 work for companies in its Canadian supply chain.
“We like competition. We believe it makes us better. And Bombardier can sell its aircraft anywhere in the world. But competition and sales must respect globally accepted trade law,” he said.
Bombardier reacted Tuesday night by stating the magnitude of the U.S. tariff is “absurd” and accused Boeing of trying to stifle competition and stop American airlines from buying the C Series jet.
Transport Minister Marc Garneau, who has praised the C Series jet, repeated his support for the Canadian company on Wednesday. He said “nothing can compare with this plane” and noted that Boeing has received “tens of billions of dollars” in subsidies from the American government over several decades.
The Liberal government has been posturing against Boeing for weeks. Last week, Trudeau threatened to block Canada’s proposed purchase of 18 Super Hornet fighter jets from the U.S. manufacturer.
Speaking outside the House of Commons on Wednesday, NDP Leader Thomas Mulcair ridiculed the threat to terminate a non-existent contract as too weak and called on Trudeau to take up the trade dispute directly with U.S. President Donald Trump.
“It’s about time that we had a government that had enough backbone to stand up to the bullying of Boeing and of the U.S. government,” he said. Conservative Leader Andrew Scheer told reporters it’s up to the government to defend the consequences of its Bombardier loan.