MAY’S JET DEAL STITCH-UP FURY
She attacks U.S. as it slaps huge tariff on UK exports
‘This could jeopardise our relationship’
THERESA May condemned the US aerospace giant Boeing last night after a bitter trade dispute with rival firm Bombardier threatened thousands of jobs in the UK.
On a bleak day for transatlantic relations, the Prime Minister said Boeing’s successful bid to slap punitive tariffs on Bombardier was ‘no way to operate’ and put the company’s ‘long-term partnership’ with the UK at risk.
She was backed by senior ministers including Defence Secretary Sir Michael Fallon, who warned Boeing it could be cut out of UK defence contracts worth billions.
The row came after an interim decision by the US Department of Commerce, in a case brought by Boeing, to impose a tariff of nearly 220 per cent on imports of Bombardier C-Series aircraft into America.
The ruling – an embarrassment for Mrs May, who personally lobbied President Donald Trump over the dispute – marked a setback to hopes of a swift UK-US trade deal after Brexit.
And the threat to 14,000 jobs in Northern Ireland – where Bombardier, a Canadian firm, makes wings for its planes – puts a strain on Mrs May’s Commons power-shar- ing deal with the Democratic Unionist Party. Last night she said she was ‘bitterly disappointed’ by the US decision, which it is feared will kill off the C-Series programme.
The Prime Minister said: ‘I will be doing everything I can to ensure the future of Bombardier in Northern Ireland is guaranteed and protected.
‘We have had a long-term partnership with Boeing, worked with Boeing over the years, and I think this is no way to operate in terms of such a long-term partnership. That long-term partnership is being undermined by this behaviour by Boeing.’
Mrs May spoke to DUP leader Arlene Foster and Michelle O’Neill, Sinn Fein’s leader in Northern Ireland, on the phone last night in an attempt to limit the damage.
The Defence Secretary led the backlash against Boeing, which has defence contracts with the UK worth around £8billion. ‘This is not the behaviour we expect from Boeing and it could indeed jeopardise our future relationship with them,’ said Sir Michael.
‘Boeing wants and we want a long-term partnership, but that has to be two-way. Boeing stand to gain a lot of British defence spending.
‘We have contracts in place with Boeing for new maritime patrol aircraft and for Apache attack helicopters and they will also be bidding for other defence work, and this kind of behaviour clearly could jeopardise our future relationship.’
The Ministry of Defence said: ‘Boeing’s position in this case is unjustified and not what we expect of a long-term partner to the UK. Whilst this will not affect our existing programmes, these actions could undermine our future relationship and programmes.’
Foreign Secretary Boris Johnson said: ‘I hope it can be resolved speedily and obviously we’re very disappointed by the result. We will be looking at what we can do to ensure free and fair trade to make sure that Bombardier gets a fair crack of the whip and first suck of the saucepan.’
Boeing said it understood the Government’s concerns about jobs in Belfast, but claimed Bombardier was not playing by accepted international trading rules.
DUP leader Mrs Foster said the US ruling was ‘very disappointing’ but added it was not the end of the process. A final decision on the tariff will be made in February.
Labour leader Jeremy Corbyn urged the Government to stand up to the US President, telling his party conference in Brighton: ‘If the special relationship means anything, it must mean that we can say to Washington: that way is the wrong way.’
Ross Murdoch, of the GMB union, said: ‘This is a hammer blow to Belfast. Theresa May has been asleep at the wheel when she could and should have been fighting to protect these workers. It’s high time she woke up.’
Canadian prime minister Justin Trudeau warned that he could abandon plans to buy Boeing’s F-18 Super Hornet fighter jets for the country’s air force.