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U.S. secretary of commerce sides with Boeing on Bombardier dispute

U.S. secretary of commerce sides with Boeing on Bombardier dispute

U.S. secretary of commerce sides with Boeing on Bombardier dispute

The U.S. Department of Commerce Department finalized duties of up to 300% on sales of Bombardier CSeries aircraft, following hearings this week, and upholding its finding that a 2016 sale of at least 75 of the narrow-body jets to Delta Air Lines comprised an unfair trade practice.

Now that the Commerce Department has decided the amount of the tariff, the final decision on whether to implement the 292.21% duty moves to the US International Trade Commission.

"Boeing is using its meritless complaint as cover to close the USA market, which is one of the biggest in the world, to new entrants such as Bombardier's C Series aircraft", Turner said.

The decision is not necessarily final; it could be overturned if the U.S. International Trade Commission finds that Boeing did not suffer material injury as a result of the Delta sale; the ITC's final decision is expected on february 1.

"The C Series would not even exist at this point but for those subsidies", Boeing said, adding that the support enabled the company "to dump aircraft into the US market at absurdly low prices".

Bombardier calls Boeing's criticism an "unfounded assault on airlines, the flying public, and the U.S. aerospace industry", saying the entire complaint has been overtaken by events. "The C Series would not even exist at this point but for those subsidies", Boeing said in a statement emailed during Bombardier's panel remarks.

He also said that Boeing's claim was meritless since they don't have an aircraft that can compare to the CSeries.

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Bombardier for its part expressed its disappointment that the U.S. Commerce Department did not take the opportunity to "rectify its past errors".

"Boeing's assertion that future imports from Canada threaten to cause material injury is necessarily based on just the type of "speculation and conjecture" that is prohibited under both USA and worldwide law", MacNaughton told the panel.

"A single large order, like Bombardier's sale to Delta, takes years of demand out of the market". The plan would create a new wrinkle because the planes would effectively be a USA product. He says nothing justifies such duties.

Airbus, Boeing's European rival, reached a deal with Bombardier in October to purchase a 50.01 per cent stake in the C Series commercial jet and plans to build an assembly line in Alabama for American customers while maintaining the primary line in Mirabel, Que.

Bombardier doesn't deny that Delta received a good price. The U.S. decision means that the relations between the country and its neighbor, Canada are likely to be terribly strained.

Boeing says the CSeries benefited from hundreds of millions of dollars in launch aid from the governments of Canada and Britain and a $1 billion equity infusion from the province of Quebec.

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