U.S. SLAPS 220pc DUTIES ON BOMBARDIER JETS
US imposes preliminary 220pc anti-dumping duties on Canadian firm’s CSeries jets
THE United States announced on Tuesday it was imposing preliminary anti-dumping duties of 220 per cent on CSeries jets made by Canadian aerospace firm Bombardier following a complaint by American manufacturer Boeing.
The Commerce Department ruled that Bombardier had unfairly benefited from state subsidies in selling its 100- to 150seat aircraft below cost to Delta Airlines.
Both Canada and the United Kingdom, where some of the parts are built, had sought to persuade the US to drop the case.
“The US values its relationships with Canada, but even our closest allies must play by the rules,” said Commerce Secretary Wilbur Ross in explaining the move.
“The subsidisation of goods by foreign governments is something that the Trump administration takes very seriously, and we will continue to evaluate and verify the accuracy of this preliminary determination.”
The ruling, which is set for a final determination on December 12, could further test relations between Ottawa and Washington, already strained by the ongoing renegotiation of the North Atlantic Free Trade Agreement (Nafta), which also involves Mexico.
Canadian Foreign Minister Chrystia Freeland stressed that the US investigation was only in its preliminary stages and duties could only be imposed once the final probe was completed.
“Canada strongly disagrees with the anti-dumping and countervailing duty investigations into imports of Canadian large civil aircraft. This is clearly aimed at eliminating Bombardier’s CSeries aircraft from the US market,” she said.
Freeland stressed that components of the jets were supplied by American companies, directly supporting nearly 23,000 jobs across the US.
“Boeing’s petition is threatening these US jobs,” she added.
Bombardier also employs 8,000 people in Northern Ireland, including 4,200 in aeronautics, most in a Belfast factory that builds the CSeries wings and fuselage.
“We strongly disagree with the US Commerce Department’s preliminary decision,” said the company. “The magnitude of the proposed duty is absurd and divorced from the reality about the financing of multibillion-dollar aircraft programmes.
Boeing had claimed Bombardier sold American Delta Airlines 75 CS100 aircraft for US$19.6 million (RM82.76 million), despite manufacturing costs of US$33.2 million.
The levies imposed by Washington would bring the theoretical cost of each plane to more than US$60 million.
Meanwhile in London, the British government said it was “bitterly disappointed” by the US decision.
“Bitterly disappointed by initial Bombardier ruling. The government will continue to work with the company to protect vital jobs for Northern Ireland,” said Prime Minister Theresa May’s government on Twitter.
“We will continue to strongly defend UK interests in support of Bombardier at the very highest level because an adverse outcome risks jobs and livelihoods among the 4,200 skilled workers in Belfast,” it said. AFP