Boeing alleges Bombardier is hiding information in anti-dumping probe
U.S. aerospace giant says Canadian rival ‘outright refused to comply’ on requests
TORONTO The Boeing Co. has accused Bombardier Inc. of withholding information in an ongoing anti-dumping investigation and asked the U.S. Department of Commerce for an “upward adjustment” that is nearly double the current proposed 79.82 per cent dumping margin.
In a document filed with the U.S. Department of Commerce in early September, Boeing said its Montreal-based aerospace rival’s alleged refusal to co-operate has impeded the anti-dumping investigation it initiated earlier this year, calling Bombardier’s conduct “egregious.” Boeing alleges in the document that, as a result of Bombardier’s alleged non-compliance, the government should apply an adverse facts available (AFA) margin of 143.35 per cent.
Bombardier filed a document in response on Wednesday, disputing Boeing ’s assertions, saying the company has responded to “each and every request for information by the Department, and provided the Department with thousands of pages of evidence.” Bombardier said the 143.35 per cent margin should be rejected “because it cannot be corroborated” and that the Commerce Department should either terminate the investigation or issue a negative dumping determination.
The latest development in the ongoing trade dispute comes as the Department of Commerce prepares to announce a preliminary determination on Tuesday in its countervailing duty investigation.
A preliminary determination in the anti-dumping investigation is set to be issued on Oct. 4, although that deadline can be extended.
The Chicago-based aerospace giant first filed a petition with the U.S. International Trade Commission and the Department of Commerce in April, alleging that massive government subsidies have allowed Bombardier to embark on “an aggressive campaign to dump its C Series aircraft in the United States.”
Bombardier has repeatedly rejected Boeing ’s claims, and earlier this month called the petition “an unfounded assault on airlines, the travelling public and further innovation on aerospace.”
In the document, which was filed by Boeing as a response to Bombardier’s supplemental questionnaire, the company alleges that Bombardier has not reported any of the sales or cost information requested by the government in order to make its dumping calculations.
“It has been energetic in trying to dispute the existence of sales in this investigation, filing voluminous submissions on the topic it wants to discuss. But when asked to provide information the Department considers relevant, it has either dissembled, professed ignorance, or, more recently, outright refused to comply,” Boeing said in its submission.
“At each step, Bombardier’s noncompliance has been blatant, and consisted of transparent attempts to impede the Department’s important work and hide the true magnitude of its dumping.”
Boeing has also argued that the Commerce Department should use the average cost over the period of delivery of the Delta and Air Canada C Series sales, which span from 2018 to 2022, to calculate a revised margin, which the company says comes in at 143.35 per cent.
However, Bombardier said Boeing had ignored the fact that no C Series aircraft have been delivered during the period of investigation and that “the Department lacks a sufficient evidentiary basis to justify proceeding.”
“As Bombardier has consistently argued, and as the evidence on the record demonstrates, there has been no sale under the Department’s regulations of subject merchandise during the period of investigation,” Bombardier said, adding that the Delta purchase agreement cited by Boeing does not constitute a sale.
Pressure for Boeing to drop or settle its petition has been mounting in recent weeks. The dispute prompted a strong response from Prime Minister Justin Trudeau earlier this week, who said Boeing can forget about selling fighter jets to Canada as long as its trade complaint against Bombardier is ongoing.
The U.K. government also joined a growing list of interest parties, including the Canadian government, urging Boeing to drop its complaint. Prime Minister Theresa May raised the issue on a call with U.S. President Donald Trump earlier this month.