Belfast Telegraph

Bombardier’s tariff row could backfire on Boeing, warns expert

- BY JOHN MULGREW

A TRANSATLAN­TIC trade row threatenin­g thousands of Bombardier jobs in Belfast could backfire for Boeing as Prime Minister Theresa May hints at a boycott of the US plane maker, an expert has said.

Boeing’s complaint against Bombardier could now result in a massive 220% tariff on its Belfast-made C Series planes being sold to the US.

Mrs May (below) says the Government will continue to work to protect more than 4,000 employees at Bombardier’s plants here, who face an uncertain future after a ruling by the Trump administra­tion’s Department of Commerce.

While talk of a trade war between the UK and US has been downplayed by Mrs May, in remarks that could be seen as a veiled rebuke of the US stance, the Prime Minister warned of “creeping protection­ism” around the world.

Up to 1,000 Bombardier staff in Northern Ireland work on the wings and fuselage of the C Series passenger planes.

Mark O’Connell, chief executive of Belfast-based internatio­nal trade experts, OCO Global, said: “There is a bigger picture here.

“This dispute could potentiall­y backfire on Boeing’s strategy in the UK. Boeing is in the process of building a production facility in Sheffield to manufactur­e high-tech components for some of its next generation aircraft. “The UK government

does not discrim- inate between companies and does not want to become embroiled in a trade war between the US and Canada.

“Indeed, many US firms take advantage of the attractive cost base and incentives available in the EU which regulates applicatio­ns for state aid across the whole bloc, unlike the US which does not regulate across the entire states.

“Belfast remains a competitiv­e location for manufactur­ing and that will persist and even improve in a post-Brexit environmen­t. Global corporatio­ns like Bombardier will continue to expand in locations that are competitiv­e.”

Owen Reidy, Irish Congress of Trade Unions assistant general secretary, urged stronger action from the UK government.”

He reiterated calls for the UK government to “immediatel­y review all contracts with Boeing”.

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