Bombardier wins big in U.S. aircraft decision
Trade board rules Boeing wasn’t harmed by planned Canadian plane imports
MONTREAL— The skies over the world’s largest aerospace market have opened to Bombardier’s C Series aircraft after it won a resounding victory Friday against Boeing Co.
U.S. International Trade Commissioners voted 4-0 that Boeing didn’t suffer harm from prospective imports of C Series planes.
Boeing launched the trade case last April, arguing that governments in Canada and Britain subsidized the plane’s development and allowed Bombardier to sell it at unfairly low prices.
The decision eliminates nearly 300 per cent in duties imposed by the Department of Commerce.
“Today’s decision is a victory for innovation, competition, and the rule of law,” the Montreal-based manufacturer said in a news release moments after the vote was announced.
The decision was a surprise to many observers who expected the commission would side with Boeing even though they believed the company sustained no harm.
Even one government official said Ottawa wouldn’t be surprised by a loss.
Several commentators said the ruling restores the commission’s credibility because it wasn’t moved by po- litical calculations or pressure from U.S. President Donald Trump’s protectionist rhetoric.
The decision caused Bombardier’s stock to shoot up to its highest level in three years. Shares gained more than 15 per cent after the ruling, closing at $3.54.
Foreign Affairs Minister Chrystia Freeland welcomed the decision.
“Canada-United States trade is important to the prosperity of both our countries. This decision will support well-paying middle-class jobs on both sides of the border,” she said in a statement.
Chicago-based Boeing said it is disappointed by the decision but will review the commission’s detailed opinions when they are released in the coming days.
“We are disappointed that the International Trade Commission did not recognize the harm that Boeing has suffered from the billions of dollars in illegal government subsidies that the Department of Commerce found Bombardier received and used to dump aircraft in the U.S. small single-aisle airplane market,” it said in a statement.
Boeing said it will continue to document any harm to Boeing from illegal subsidies and dumping pricing.
“We will not stand by as Bombardier’s illegal business practices continue to harm American workers and the aerospace industry they support. Global trade only works if everyone adheres to the rules we have all agreed to. That’s a belief we will continue to defend.”