Now Brazil targets Bombardier in trade war, as firm wins £1.3bn deal

BOMBARDIER has ended one of the most turbulent weeks in its history by experiencing mixed fortunes amid a possible fresh trade dispute and a new billion-pound deal.

The firm’s 4,000 Northern Ireland workers have been dealt another potential blow, as the body that oversees global trade is to probe a complaint from the Brazilian government over its C Series planes.

The World Trade Organisation has opened a dispute settlement panel to rule on Brazil’s accusation that Canada has hurt its own commercial jet industry by subsidising Bombardier’s part-Belfast built C Series jets, according to Reuters.

A similar claim by US giant Boeing is threatening the Canadian-owned aerospace firm’s future.

Boeing’s action could result in a massive 220% tariff being imposed on C Series planes sold to the US following an initial ruling by the Department of Commerce in Washington this week.

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

Prime Minister Theresa May (below) has said the UK Government will continue to work to protect the 4,000 employees at Bombardier’s plants here, who face an uncertain future as a result of the trade dispute.

The initial ruling could scupper a multi-billion dollar deal with Delta Airlines for up to 125 of the jets.

This week Owen Reidy, Irish Congress of Trade Unions assistant general secretary, urged stronger action from Westminster to safeguard local aerospace jobs. He reiterated calls for the UK Government to “immediately review all contracts with Boeing” following its legal challenge over the C Series.

Fears for the future of the workforce here prompted business groups to warn that Bombardier could question the economic sense of remaining in Northern Ireland if the tariff decision isn’t reversed or seriously mitigated.

Ann McGregor, chief executive of the Chamber of Commerce, said: “A total of 1,000 staff work on the manufacture of the wings for the new C Series aircraft and the company also employs many more in the supply chain.

“It is imperative that the British Government works to protect these vital jobs — the imposition of the tariffs could make Bombardier question remaining in Northern Ireland, where it has operations in four locations.”

Angela McGowan, CBI Northern Ireland director, said the decision “reinforces the need for the swift return of an inclusive devolved government”.

“Government and business must work in partnership to deliver a new far-reaching industrial strategy to improve regional resilience, economic competitiveness and facilitate growth,” she added.

Meanwhile, Bombardier yesterday secured a firm order for 25 of its Q400 turboprop planes, with a potential 25 more to follow.

Indian carrier SpiceJet is behind the order, which is worth up to £1.3bn, according to list prices. SpiceJet has taken delivery of 15 of the Q400s since 2010.

Bombardier’s team in Belfast designs and manufactures the wing-mounted flight components for the aircraft.